久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Debt financing to sustain fiscal spending

By Chen Jia | China Daily | Updated: 2019-06-15 08:04
Share
Share - WeChat
[Photo/IC]

Proactive policies to offset external headwinds like trade tensions, say economists

Economists expect debt financing to be the mainstay of China's fiscal spending, after the government saw monthly income decline in May for the first time this year.

Conflicts between moderate revenue growth and stronger expenditure may increase, they said.

The value-added tax reduction, effective since April 1, became a major factor that slowed government income. The VAT declined to 394.2 billion yuan ($56.9 billion) last month, down by 19.9 percent year-on-year, according to data of the Ministry of Finance on Friday. The VAT revenue growth rose to 17.5 percent in April, up from 9.3 percent in March.

The VAT rate for manufacturing, wholesale and retail industries was cut to 13 percent from 16 percent, benefiting businesses in these areas a lot, according to a statement from the ministry.

For the first five months, the overall fiscal revenue growth pace retreated to the year's slowest level of 3.8 percent, down from 5.3 percent from January to April. The fiscal spending maintained a high-speed growth at 12.5 percent by the end of May, the data showed.

The first five months' fiscal income growth rate reached the lowest level since 2010, which was also much slower than the GDP growth rate. In May, the total fiscal income declined by 2.1 percent year-on-year. And the total tax income declined by 7 percent year-on-year.

The financing gap, between fiscal revenue and expenditure, will be enlarged in the first half this year, mainly due to the more aggressive tax and fee reduction and the accelerated government spending, a senior official from the Ministry of Finance told China Daily.

"At the moment, the key task is continually implementing the fiscal policies that have been announced, and we will keep a close eye on the changes in the economy and the external situation," he said, without revealing any further policy adjustment plan.

Economists said that the proactive fiscal policy will play an important role in offsetting external headwinds, especially after the United States escalated trade tensions with China. Government spending can support investment in infrastructure construction, and some social welfare areas such as healthcare and education.

Some of them speculated that if the "extreme scenario" happens, or the economic pressure increases dramatically amid external shocks, Chinese local governments may apply for additional quota of bond issuance, and it should be approved by the country's top legislators.

Increasing the annual bond quota in the middle of a year is rare, but it is possible and advisable, said Robin Xing, Morgan Stanley's chief economist in China. Besides, he said the government's deposits or some financial surplus from previous years could be used for stimulus.

The local government bond quota was set at 3.08 trillion yuan in 2019, and about 47.5 percent of the annual quota had been issued by May. And 859.8 billion yuan of special bonds has been issued in the first five months, according to the Ministry of Finance.

The tax-cut policy has helped to counter economic headwinds, but whether enterprises or households will use the saved money for investment and consumption will depend on their confidence for the future, said Xing.

Otherwise, direct fiscal stimulus could support economic growth, including encouraging automobile and home appliances consumption, and accelerating spending on social security and infrastructure construction, he said.

Policymakers relaxed funding restraints on local governments' off-budget channels, encouraging the issuance of special bonds and financing through local government financing vehicles.

The government released a document on Monday which allows funds raised by local government special bonds to be equity for infrastructure projects.

The authorities also encourage financial institutions to support these projects, especially through bank loans and insurance funds. The measures demonstrated the government's incremental efforts to counter downside risks amid renewed trade uncertainty, supporting infrastructure investment in the coming months, according to economists.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 欧美丰满大乳大屁股毛片 | 国产视频高清在线观看 | 萌白酱香蕉白丝护士服喷浆 | 亚洲一区在线视频 | 男人使劲躁女人视频小v | 成人污网站 | 国产成人精品综合久久久软件 | 亚洲夜色| 久久九九久精品国产 | 免费成人在线网站 | 亚洲日本aⅴ片在线观看香蕉 | 亚洲人的天堂男人爽爽爽 | 禁止18周岁进入免费网站观看 | 美女视频免费黄色 | 狼人 成人 综合 亚洲 | 最全精品自拍视频在线 | 97视频在线观看免费视频 | 久久精品国产这里是免费 | 国产精品视频网址 | 99亚洲自拍 | 大学生一级一片第一次欧美 | 97国内免费久久久久久久久久 | 久久视频一区 | 亚洲影院手机版777点击进入影院 | 视频国产91 | 韩国美女爽快一级毛片黄 | 亚洲欧美成人综合在线 | 福利一二三区 | 久久精品一| 亚洲欧美日韩精品久久久 | 欧美顶级毛片在线播放小说 | 免费毛片儿 | 欧美国产精品一区二区免费 | 欧美精品国产制服第一页 | 加勒比色综合久久久久久久久 | 国产精品一区二区丝瓜 | 亚洲一区二区三区四区在线 | 国产系列在线 | 国产短视频精品一区二区三区 | 91精选视频 | 国产肥老妇视频一 |