As early as the beginning of this year, the vast majority of provinces lowered their income expectations in their budget reports submitted to local peoples congresses, taking into account the greater downward pressure on the economy. For example, at the beginning of the year, Beijing set the growth rate of general public budget revenue to 0%.
However, the sudden outbreak of the epidemic has had an unprecedented impact on Chinas economy and society. In order to prevent and control the epidemic, many local economies have been suspended and their financial revenues have dropped sharply. With the spread of the epidemic has been curbed, the resumption of work and production has been gradually pushed forward, and the decline rate of financial revenue has gradually narrowed. However, it is still difficult for the vast majority of places to meet the targets of income and expenditure at the beginning of the year.
According to the budget law, local governments can make budget adjustments when they need to adjust the total budget expenditure, the budget stability and adjustment fund, the budget arrangement of key expenditures and borrowing debts. Since November, many provinces have adjusted their provincial budgets in accordance with the law, including income adjustment.
Recently, the 26th session of the Standing Committee of the 15th Beijing Municipal Peoples Congress examined and approved the plan for adjusting the municipal budget of Beijing in 2020. The citys general public budget revenue will be reduced from 581.71 billion yuan to 546.7 billion yuan, and the growth rate will be adjusted from zero growth at the beginning of the year to - 6%.
The novel coronavirus pneumonia outbreak in Beijing has brought different impacts on the national and provincial financial revenues since the beginning of this year, the relevant responsible person of the Finance Bureau said. Due to multiple factors, such as the continuous income reduction in the reform of replacing business tax with value-added tax, and the long-term prevention and control time caused by the fluctuation of epidemic situation in newly developed areas, the scale of fiscal revenue reduction in Beijing is even larger. It is expected that the epidemic situation and other factors will reduce the growth rate of local fiscal revenue by about 6.6 percentage points.
Although the decline rate of Beijings fiscal revenue has been narrowed for six consecutive months, the general public budget revenue of Beijing has reached 471.26 billion yuan in the first 10 months, with a year-on-year decrease of 9.1%.
Guangdong recently adjusted the provincial budget for the third time. It is estimated that the provincial level revenue will be 330.69 billion yuan in 2020, 10.2 billion yuan less than the budget at the beginning of 2020, and the growth rate of provincial level revenue will be reduced from 3.6% at the beginning of the year to 0.5%.
Hitherto unknown novel coronavirus pneumonia, Dai Yunlong, director of the Guangdong provincial finance department, said that this year, the sudden outbreak of new crown pneumonia has brought unprecedented impact on the economic and social development of our province, and the series of tax reduction and reduction (Exemption) policies introduced by the central government and our province have responded to the epidemic situation. The benefits and benefits of the government have been supporting the economic development, while the provincial tax revenue has continued to grow negatively, though the governments assets and resources have been vigorously revitalize. However, it is still difficult to complete the provincial revenue budget at the beginning of the year.
In addition, Hebei has recently adjusted the target of general public budget revenue in 2020 from 6.5% to more than 1%.
Budget revenue is an expected and guiding indicator, and it is not a rigid task. It is normal to fail to achieve the revenue target. Because the income must be collected according to law, which is affected by many factors such as economy, so the budget law does not involve income when adjusting the budget, but expenditure and debt. The purpose of this is to avoid rigidity of income target. Professor Shi Wenwen of China University of political science and law told the first financial reporter.
Taking into account the impact of the epidemic, Chinas general public budget revenue is expected to be 18 trillion yuan in 2020, a year-on-year decrease of 5.3%. However, in the first 10 months, the drop rate of this income has narrowed to 5.5%, which means that this year is expected to achieve or even exceed the annual revenue target.
Although many localities have lowered their income targets for this year, there are still efforts to increase local incomes through multiple channels.
For example, in order to alleviate the impact of the epidemic on fiscal revenue, Guangdong Province has increased non tax revenue by continuously promoting the transaction of mineral resources such as paddy field index, old reclamation index and sea sand, etc., and actively vitalizing land and government equity of state-owned enterprises. In 2020, Guangdong Provinces non tax revenue at the same level is expected to reach 63.409 billion yuan, an increase of 218.14 billion yuan compared with the budget at the beginning of the year.
With the steady recovery of Chinas economy, the growth rate of national fiscal revenue has turned from negative to positive in recent months.
At present, local governments are preparing their 2021 budgets. Many finance and tax experts predict that compared with the actual revenue growth rate this year, many places may increase the growth rate of fiscal revenue next year. However, this is only a special situation under the impact of the epidemic. The medium and low-speed growth of fiscal revenue is still normal. The overall finance faces the pressure of reducing revenue and increasing expenditure, and the financial operation will still be in a tight balance state.