In addition, the transportation investment has always exceeded the expected standard. In 2019, China has invested 802.9 billion yuan in railway, 2345.1 billion yuan in road and water transportation, and 290000 kilometers of new and reconstructed rural roads, far exceeding the target of 800 billion yuan, 1.8 trillion yuan and 200000 kilometers set at the beginning of the year.
New jobs completed more than expected
Although economic growth slowed down from 6.6% in the previous year, employment was not affected much. The implementation shows that in 2019, 13.52 million new jobs will be created in cities and towns across the country, the monthly national urban survey unemployment rate will remain between 5.0% and 5.3%, and the urban registered unemployment rate will be 3.62%, which are significantly better than the expected targets of more than 11 million new jobs, around 5.5% urban survey unemployment rate and within 4.5% urban registered unemployment rate.
The result of employment is hard won, which has kept the number of new urban jobs above 13 million for seven consecutive years. In particular, the registered urban unemployment rate is only 3.62% in 2019, which is a new low for 18 years.
The only coincidence between the six stability and the six guarantees is employment, which is put in the first place. Therefore, the importance of the employment situation can be seen. Wen bin, chief researcher of China Minsheng Bank, said in an interview that the unemployment rate in this years urban survey rose to 6.2% in February, although it fell, it was still 6.0% in April, due to the shutdown of enterprises, the suspension of service industry and the obstruction of graduates job search caused by the epidemic.
Therefore, in Wen Bins view, the employment issue is not only the top priority of the current work, but also in the upcoming two sessions, this years employment goal will not weaken, but will become the focus of the two sessions.
According to statistics, before the outbreak of the epidemic, the local two sessions have been held one after another, and the economic growth target of many regions is set at 6% or more. However, in various conferences held since March, the goal of economic growth has been gradually weakened, with growth rate higher than the national average as the main goal.
In the field of employment and peoples livelihood, there are more ink. For example, the two sessions of the Sichuan Provincial Peoples Congress put forward to firmly keep employment in a prominent position in the current work. The second of the ten major tasks of this year determined by the two sessions of the Yunnan Provincial Peoples Congress is to ensure the employment of residents.
The reason for setting economic growth rate in this way is to give priority to ensuring employment as the reference object. With the transformation of Chinas economic structure, the ability of service industry to absorb employment is becoming stronger and stronger. In the era of industrial economy, for every 1% increase in Chinas GDP, about 1 million people will be employed; in the service-oriented economic structure, for every 1% increase in GDP, about 1.5 million people will be employed, now about 2 million people will be employed. Said Wen bin.
Therefore, 3% is the bottom line. Only when GDP reaches a certain target can stable employment be based. Wen Bin said that there are 8.34 million graduates in a single university this year. With migrant workers going out, more specific economic growth is needed to guide target management to stabilize employment.
The largest tax reduction in history
Compared with the previous year, in the quantitative indicators of the 2019 government work report, the task of capacity reduction is less, and nearly 10 new indicators related to tax reduction and fee reduction are added.
The implementation shows that compared with the target of reducing the burden of corporate tax and social security payment by nearly 2 trillion yuan in 2019 put forward at the beginning of the year, the tax reduction and fee reduction of last year exceeded 2.3 trillion yuan, accounting for more than 2% of GDP.
Whats the concept of tax reduction and fee reduction over 2.3 trillion yuan? According to the data of the Ministry of finance, through measures such as increasing individual tax exemption, tax reduction and fee reduction in 2017 exceeded 1 trillion yuan, and tax reduction and fee reduction in 2018 was about 1.3 trillion yuan. That is to say, the amount of tax reduction and fee reduction in 2019 is equivalent to the sum of the past two years, which can be called the largest tax reduction and fee reduction in history.
According to Zhang Deyong, a researcher at the finance and Taxation Research Office of the Institute of Finance and trade, CASS, tax reduction is not only an effective way to reduce the burden on enterprises, but also a key measure to cope with the downward pressure on the economy. According to the calculation of the finance and taxation department, the tax reduction and fee reduction led the GDP growth of the year by 0.8%, the fixed investment growth by 0.5%, and the total retail sales of consumer goods growth by 1.1%.
Who benefits the most? According to Zhang Deyong, in terms of the direction of tax reduction and fee reduction, the burden reduction of manufacturing industry and small and micro enterprises is the most obvious. In particular, after deepening the reform of value-added tax, the average monthly net increase of general taxpayers was 88800, nearly twice the amount before the reform.
At last years executive meeting of the State Council, almost every month there were issues related to tax reduction and fee reduction. For example, on January 19 last year, the executive meeting of the State Council decided to launch a number of new inclusive tax reduction measures for small and micro enterprises, which is expected to reduce the burden of small and micro enterprises by about 200 billion yuan every year. It was proposed that the starting point of VAT for small-scale taxpayers, including small and micro enterprises, individual businesses and other individuals, should be increased from 30000 yuan of monthly sales to 100000 yuan.
What are the general considerations for this years tax reduction and fee reduction policy? Liu Kun, Minister of finance, recently wrote in the peoples Daily that this year more efforts will be made to reduce taxes and fees. Through institutional arrangements and phased policies, we will focus on reducing the tax burden of small and medium-sized micro enterprises, individual businesses and enterprises in difficult industries. We will continue to implement systems such as reducing the value-added tax rate and the enterprises endowment insurance rate, and appropriately extend the implementation period of some phased tax reduction and fee reduction policies introduced in the early stage.
In Zhang Deyongs view, under the condition that the potential growth rate of Chinas fiscal revenue is decreasing and the rigid growth trend of fiscal expenditure is not decreasing, there is limited space for tax reduction and fee reduction in the future.
Therefore, efforts can be made in the tax system itself, such as adjusting the corporate income tax that has not been moved. Zhang Deyong believes that at the same time, we should focus on the general tax reduction in the direction of structural tax reduction and general tax reduction last year, and ensure employment and basic peoples livelihood by ensuring the main body of the market, so as to stabilize the foundation of economic and social development.
Looking forward to the two sessions: the government work report or the third session of the 13th CPPCC National Committee decided to hold the two sessions on May 21. Looking forward to whether the goal of GDP growth will weaken fiscal stimulus. Source: responsible editor of 21st century economic report: Wang Xiaowu_ NF