The budget report is called the "national ledger." As an important means of macro-control, how can a more proactive fiscal policy continue to exert more force and be more effective? What are the fiscal policy measures to support expanding domestic demand and improving people's livelihood? On behalf of the committee members and outside experts to carry out heated discussions.

Fiscal policy continued to be vigorous and more effective

"The government work report pointed out that we will ensure that fiscal policy continues to be vigorous and more effective." Representative Li Feng, Director of the Shandong Provincial Department of Finance, said that continuous efforts should be made not only to maximize the effectiveness of the policies that have been introduced, but also to introduce new and powerful policies in a timely manner, and the policies will continue to exert force. To be more effective, we need to make full use of policy space, strengthen counter-cyclical regulation, make regulation more forward-looking, targeted, and effective, and make our policies stronger and more effective.

The deficit-to-GDP ratio is an important vane of macro policy. "According to the budget report, this year's deficit-to-GDP ratio will be set at around 4 percent." Luo Zhiheng, chief economist and director of the institute at Yuekai Securities, said the deficit this year will increase by 1.6 trillion yuan over last year, and the scale of fiscal expenditure will be further increased. Fiscal policy should take the initiative to step up efforts to speed up the allocation of funds and form actual expenditures as soon as possible.

Representative Li Feng said that the national general public budget expenditure of 29.7 trillion yuan, counter-cyclical adjustment efforts are intensified, and fiscal expenditure is further expanded, which will effectively promote sustained and healthy economic and social development.

Sun Zhi, director of the Department of Finance of Ningxia Hui Autonomous Region, said that the budget report proposes to increase the special debt limit of local governments by 4.4 trillion yuan this year, an increase of 500 billion yuan over the previous year, arrange a larger scale of government bonds, and support local governments to strengthen weaknesses in key areas, which will provide more support for stable growth and structural adjustment.

"There are also new highlights in the special bond management mechanism." Sun Zhi said that the scope of special bond investment has been expanded, and it can be used for land acquisition and storage, and the purchase of commercial housing stock. At the same time, the areas where special bonds can be used as project capital have also been expanded from 17 to 22, and these policy arrangements are conducive to further play the role of investment driving special bonds. Ningxia has reserved a large number of projects in the fields of green electricity park, modern coal chemical industry, intelligent computing power, and new materials, and will make good use of special bond funds to support the construction of a number of high-quality projects with strong foundation, long-term benefits, and increased sustainability.

"This year's fiscal policy has a more positive tone, which is reflected in greater intensity, faster pace, more ways, better structure, better communication with the market and higher coordination between policies." Mr Law said a more proactive fiscal policy could play a number of roles at the moment: first, expand aggregate demand with the necessary spending intensity; Second, optimize the structure of capital supply and promote the development of new quality productive forces; Third, boost market expectations and confidence.

We will pay more attention to improving people's lives and promoting consumption

The budget report proposes to issue 1.3 trillion yuan of ultra-long-term special Treasury bonds, an increase of 300 billion yuan over the previous year, of which 800 billion yuan will be used to give greater support to "dual-purpose" projects, and 500 billion yuan will be used to strengthen the expansion and implementation of the "two new" policies.

"Local governments will effectively ensure the funding needs of a number of major projects through the overlapping use of ultra-long-term special bonds, local government special bonds and other policy tools, which will help give full play to the leading role of major projects and the leverage role of government investment." Xu Zhangyan, deputy secretary of the Municipal Party Committee and mayor of Quzhou, Zhejiang Province, said.

The central government has earmarked the first batch of 81 billion yuan for exchanging old consumer goods for new ones in 2025. "This year, we will allocate 300 billion yuan of super long-term special government bonds to support the exchange of old consumer goods for new ones, which clearly reflects the policy intention of increasing fiscal support for consumption." Representative Xu Zhangyan said that this year we will continue to increase direct subsidies to consumers and strengthen the linkage between fiscal policies and financial policies.

We will increase central government spending on education by 5%, raise per capita government subsidies for medical insurance for urban and rural residents by 30 yuan, and raise the minimum national basic pension for urban and rural residents by 20 yuan per person per month. This year, the "livelihood content" of the "national ledger" continues to increase.

"Improving people's well-being is the fundamental purpose of development." Yang Yaqin, deputy director of the Public Policy Research Center of Yunnan University of Finance and Economics, said that it is necessary to continue to strengthen the investment in the balanced and full development of basic public services, and build a multi-level basic public service supply system.

"This year's fiscal spending will be more focused on employment, elderly care, health care, education and other areas of people's livelihood. We will do our best to implement the 'last mile' of policy implementation, so that people can truly feel the warmth and benefits brought by fiscal policy." Xining City, Qinghai Province, Xinghai Road street Party working committee secretary Liu Xiaorong said.

Li Xuhong, vice president of the Beijing National Accounting Institute, said that the next step is to strengthen project reserves and factor guarantees, and on the basis of ensuring that funds are accurately invested in the "double" and "two new" fields, the formation of a full cycle of project support from landing to production. We will improve the efficiency of the use of government funds, closely follow the national development strategy and people's livelihood needs, give full play to the role of various government investment instruments, and innovate investment and financing models.

Improve the effectiveness of policies to facilitate transformation and upgrading

Developing new quality productive forces is an inherent requirement and an important focus for promoting high-quality development. According to the budget report, the central government will allocate 11.878 billion yuan in special funds for the manufacturing sector this year, an increase of 14.5%, and 398.119 billion yuan for science and technology spending at the central level, an increase of 10%.

"The budget report proposes to increase the proportion of science and technology expenditure for basic research, and improve the basic research investment mechanism that combines competitive support and stable support." These policy measures will bring strong financial support for the development of new quality productivity, and promote the transformation of China's scientific and technological innovation from quantitative accumulation to qualitative leap, from point breakthrough to system capability improvement." Chinese Academy of Sciences Technical Institute of Physics and Chemistry is senior engineer Zhang Zhentao member said.

"The core element of developing new quality productivity is scientific and technological innovation. We should focus on allocating financial resources to scientific and technological innovation, supporting efforts to overcome key technologies, break through disruptive technologies, cultivate emerging industries, and cultivate scientific research talents." Said Li Liangbin, chairman of Jiangxi Ganfeng Lithium Group Co., LTD.

This year, the central government will allocate 34 billion yuan for the prevention and control of air pollution, 26.7 billion yuan for water pollution, and 4.4 billion yuan for soil pollution prevention and control, to promote the protection and development of beautiful rivers and lakes, and continue to support the fight to protect blue skies, clear waters, and clean land.

"From 2021 to 2024, the central financial expenditure on ecological and environmental protection will continue to increase, and the key directions of financial support for ecological civilization construction include supporting continuous efforts to fight pollution prevention and control, improving the stability and sustainability of ecosystem diversity, and promoting green and low-carbon transformation of development modes." Gu Shuzhong, a researcher at the Institute of Resources and Environmental Policy of the Development Research Center of The State Council, said that it is necessary to improve the financial resources and environmental policy system, strengthen the financial investment in ecological protection and restoration, comprehensively promote the construction of beautiful China, and better benefit the people.

The budget report proposes to continue to consolidate and expand the achievements of poverty alleviation. We will maintain the level of support, allocate 177 billion yuan in subsidies from the central government to promote rural revitalization, and give priority to supporting the development of connected agriculture, rural development and rich rural industries.

"In 2024, the village obtained more than 500,000 yuan of subsidy funds through the Jiashan County livelihood practical elderly meal assistance service project, and transformed the idle old factory into the villagers' large canteen." This year's fiscal policy remains solid and strong, and we will continue to achieve new results in promoting comprehensive rural revitalization." Zhejiang Jiashan County Dayun town Miojia village Party secretary Lu Rongjie said.

Feng Qiaobin, deputy minister of the macroeconomic research Department of the Development Research Center of The State Council, said that the central government has continued to increase transfer payments to local governments in recent years, and this year's budget report proposed to arrange more than 10 trillion yuan of transfer payments to local governments, which is conducive to easing local financial pressure, holding the bottom line of the "three guarantees" at the grassroots level, so that local governments have greater financial support for scientific and technological innovation and the improvement of people's livelihood. Promoting sustained economic recovery.

Source: Chinese government website