Multi-underground adjustment of fiscal revenue growth target in 2019: to live a tight life

 Multi-underground adjustment of fiscal revenue growth target in 2019: to live a tight life

With the successive convening of the local two sessions, the provinces handed in the fiscal revenue and expenditure questionnaire for 2018, and gave the expected growth target for 2019.

From the already open provinces, it is a common choice to lower the target for 2019. For example, Beijings fiscal revenue increased by 6.5% in 2018 and is expected to grow by about 4% in 2019.

The downward pressure on the economy and the introduction of more large-scale tax reduction and fee reduction measures are the main reasons for the reduction of local expectations. Income growth is slowing down, but peoples livelihood needs more rigid growth. In 2019, local revenue and expenditure need to be tightly balanced and ensure operation is more important.

Local governments have proposed that fiscal policies in 2019 should be more effective, tax and fee reduction policies should be implemented to reduce the burden of enterprises; fiscal expenditure should be kept under pressure, and major projects and key expenditures should be fully guaranteed, and general expenditure should be reduced.

Wang Zecai, a researcher at the Chinese Academy of Financial Sciences, told reporters on economic reports in the 21st century that under internal and external pressures, Chinas economic growth may slow down in 2019, but it will still run in a reasonable range and maintain relatively stable growth, and the overall fiscal revenue will maintain a proper growth. In order to hedge internal and external pressure, China will continue to promote tax reduction and fee reduction in 2019. It is normal that the growth rate of fiscal revenue slows down.

Multi-underground budget target

In the 21st century, economic reporters collected data from various provinces, and found that Jiangsu, Beijing, Sichuan, Henan, Hebei, Fujian and other provinces and cities, on the basis of the growth rate of fiscal revenue in 2018, lowered the target of revenue growth in 2019. At present, the budget reports of the above provinces have been adopted.

Sichuans budget report says bluntly that in 2019, the economy is facing a greater downward pressure, and the pressure of Sichuans fiscal revenue growth is further increased; there is a greater demand for rigid increase in expenditure, such as poverty alleviation, environmental protection and high-quality development. At the same time, with the implementation of the policy of tax reduction and fee reduction on a larger scale, the annual general public budget expenditure of 898.4 billion yuan is still stretched, and budgetary revenue and expenditure are still tight balance.

Sichuans general public budget revenue in 2018 was 391.1 billion yuan, an increase of 9.3%, and it is expected to increase by 7.5% in 2019.

Moreover, the Sichuan 2019 budget report was compiled in accordance with the requirements of the Sichuan Provincial Committee of the Peoples Republic of China for ensuring operation, peoples livelihood, key points and excellent structure. Chen Wei, Director of Sichuan Provincial Finance Department, said that ensuring operation is the basic function of finance, while optimizing the structure of revenue and expenditure is to better protect peoples livelihood and focus, so that limited financial funds can play a greater role.

Beijings fiscal revenue grew by 6.5% in 2018 and its projected target for 2019 was reduced to 4%. Han Jie, deputy director of the Beijing Municipal Finance Bureau, pointed out that the state has made clear the policy of reducing taxes and fees, and will reduce Beijings local income by about 30 billion yuan in 2019. In 2019, more large-scale tax reduction and fee reduction measures will be introduced. These measures will help to release the vitality of the market main body and enhance the citys development momentum in the long run, but in the short run, they will indeed bring some pressure on the growth of fiscal revenue.

Moreover, Beijings financial department also pointed out that the real estate industry under control will continue to show a downward trend in 2019. In line with the principles of adapting to the level of economic and social development, Beijing will set the growth rate of budgetary revenue at 4% in 2019.

According to the data of Beijing Municipal Finance Bureau, in 2018, the proportion of real estate financial revenue in the overall tax revenue was 13.5%, ranking second in all industries, after the financial industry.

Jiangsu Province government work report in 2019 pointed out that under the situation of increasing downward pressure in the economy, we should establish the idea of tight days. In 2018, the general public budget revenue of Jiangsu reached 863 billion yuan, an increase of 5.6% over the same period of last year, and an expected increase of about 4.5% in 2019.

In 2018, Hebeis general public budget revenue reached 351.4 billion yuan, an increase of 8.7% over the previous year, exceeding the planned target of 1.7 percentage points. The target of income growth in 2019 was set at about 6%, which is comparable to the annual economic development target.

Hebei Provincial Peoples Congress Finance and Economic Commission pointed out that the target of about 6% is positive and stable, taking into account the new opportunities faced by economic development, the impact of policy factors such as tax reduction and fee reduction, and the rigid expenditure needs of the peoples livelihood.

In 2019, we need the government and the market to tide over the difficulties, and a slight increase in fiscal revenue will do. Reducing local revenue growth targets will help to implement tax cuts and fee cuts, Yang Zhiyong, a researcher at the Institute of Finance and Economics Strategies, Chinese Academy of Social Sciences, told economic reporters in the 21st century.

Of course, there are exceptions. Tianjins general public budget revenue grew negatively in 2018, and the target for 2019 was to narrow the decline.

Tax Reduction and Fee Reduction to Revitalize the Real Economy

Reducing taxes and fees is an important part of the active fiscal policy of all regions in 2019.

Fully implement the inclusive tax reduction policy, reduce the social security premium rate of enterprises, and strictly prohibit the centralized payment of historical arrears of enterprises on their own, the government work report of Hubei Province in 2019 pointed out.

The Hubei Provincial Government will take the lead in tight days and implement the implementation rules of the Eight Provisions of the Central Committee and the Six Opinions of the Provincial Committee. Provincial administrative units, public institutions and other units will have a 5.6% decrease in the three public funds compared with 2018.

Hubei Provinces budget for 2019 revolves around such major issues as revitalizing the real economy, innovation-driven, infrastructure construction, precise poverty alleviation, pollution prevention and control, and rural revitalization. In 2019, Hubei will vigorously support the high-quality development of manufacturing industry, raise 50 billion yuan of new and old momentum conversion guidance fund, raise 10 billion yuan to support the construction of financing guarantee system, and guide financial support for the real economy.

Jiangsu has similar arrangements. Chu Yonghong, Director of Jiangsu Provincial Finance Department, pointed out that in 2019, according to the requirements of active fiscal policy, we will comprehensively implement the national policy of tax reduction and fee reduction on a larger scale, levy various fiscal revenues according to law and regulations, and strive to achieve the expected annual revenue target. We should persist in maintaining pressure, optimize the structure of fiscal expenditure, vigorously reduce general expenditure, make every effort to safeguard major projects and key expenditures, and improve the efficiency of the use of financial funds.

Jiangsus financial resources will focus on major projects, and transportation expenditure will increase by about 70% in 2019. Jiangsus major transportation infrastructure projects in 2019 include accelerating the construction of Lianhuai Yangzhen and other railways, and completing the main project of Xu-Su-Huaiyan Railway in an all-round way; starting construction of Changtai and Longtan river-crossing corridors, promoting the construction of Shanghai-Tong Bridge, Wufeng-Shan Bridge and Nanjing-Wuqiao Bridge; speeding up the construction of the second phase of 300,000-ton waterway of Lianyungang Port, grasping the relocation of Lianyungang civil airport and the reconstruction of Wuxi Make and wait.

Risk prevention is also an important work in 2019. Income and expenditure contradictions and hidden debt problems in some counties are more prominent, and risk prevention work needs to be further strengthened, Hebei Provincial Peoples Congress Finance and Economic Committee pointed out in summarizing the implementation of the 2018 budget.

The suggestions include strengthening the monitoring of financial operation in high-risk areas, promoting the market-oriented transformation of local government financing platform, actively monitoring and steadily resolving the hidden debt stock. Strengthen supervision and accountability, resolutely curb the increase of hidden debt, and strictly prohibit excessive financial resources to arrange government construction projects. Equilibrium transfer payment should be strengthened in areas with low per capita financial resources, especially in areas with financial difficulties, and comprehensive financial support capacity at the grass-roots level should be improved.

National fiscal revenue increased by 6.2% year-on-year. The balance of local debt was 18386.2 billion yuan.

According to data released by the Ministry of Finance on the 23rd, the revenue and expenditure of the fiscal revenue and expenditure in the whole year of 2018 were in good condition, with the national general public budget revenue reaching 18,335.2 billion yuan, an increase of 6.2% over the same period of last year, and the national general public budget expenditure reached a new high of 2209.6 billion yuan, an increase of 8.7% over the same period

Ministry of Finance: It is expected that the growth rate of fiscal revenue in 2019 will slow down somewhat. The Ministry of Finance will hold a press conference on January 23 to release the fiscal revenue and expenditure situation in 2018. Regarding the fiscal revenue situation in 2019, Li Dawei, deputy inspector of the Treasury Department of the Ministry of Finance, said that the growth rate of fiscal revenue in 2019 is expected to slow down, taking into account various factors.