Fully implement the transformation of value-added tax, reducing the burden on enterprises by 654.38+0.20 billion yuan.
The the State Council executive meeting held on 5th put forward ten heavy measures to stimulate the economy. According to a series of investment arrangements determined at the meeting, it is estimated that about 4 trillion yuan will be needed before the end of 20 10. This will directly stimulate the expansion of domestic demand, stimulate economic growth and promote industrial restructuring.
"It is necessary to rapidly expand investment, strike hard, take precise measures, and work hard." This was requested by the the State Council executive meeting held on the 5th. The meeting held that in the past two months, the world economic and financial crisis has become increasingly severe, and China must adopt flexible and prudent macroeconomic policies to cope with the complicated and volatile situation. At present, we should implement a proactive fiscal policy and a moderately loose monetary policy, and introduce more powerful measures to expand domestic demand.
The meeting identified ten measures to further expand domestic demand and promote economic growth. First, speed up the construction of affordable housing projects. We will increase support for the construction of low-rent housing, speed up the transformation of shanty towns, implement nomadic settlement projects, and expand the pilot projects for the transformation of dilapidated houses in rural areas.
The second is to speed up the construction of rural infrastructure. We will intensify rural biogas and drinking water safety projects and rural highway construction, improve rural power grids, speed up the construction of major water conservancy projects such as the South-to-North Water Transfer Project and reinforce dangerous reservoirs, and strengthen the water-saving transformation of large irrigation areas. Intensify poverty alleviation and development.
The third is to speed up the construction of major infrastructure such as railways, highways and airports. Focus on the construction of a number of passenger dedicated lines, coal transportation corridor projects and western trunk railways, improve the expressway network, arrange the construction of trunk airports and feeder airports in the central and western regions, and accelerate the transformation of urban power grids.
The fourth is to speed up the development of medical and health care, culture and education. Strengthen the construction of primary medical and health service system, speed up the transformation of rural junior high school buildings in the central and western regions, and promote the construction of special education schools and township comprehensive cultural stations in the central and western regions.
The fifth is to strengthen the construction of ecological environment. Accelerate the construction of urban sewage and garbage treatment facilities and the prevention and control of water pollution in key river basins, strengthen the construction of key shelterbelts and natural forest resources protection projects, and support the construction of key energy-saving and emission-reduction projects.
Sixth, accelerate independent innovation and structural adjustment. Support high-tech industrialization and industrial technology progress, and support the development of service industry.
Seventh, speed up post-disaster reconstruction in earthquake-stricken areas.
Eighth, increase the income of urban and rural residents. Next year, we will raise the minimum purchase price of grain, raise the standards of comprehensive direct subsidies for agricultural materials, subsidies for improved varieties and subsidies for agricultural machinery and tools, and increase farmers' income. Improve the treatment level of social security objects such as low-income groups, increase urban and rural subsistence allowances, and continue to improve the basic pension level of enterprise retirees and the living allowance standard for special care recipients.
Nine is to fully implement the transformation reform of value-added tax in all regions and industries across the country, encourage technological transformation of enterprises, and reduce the burden on enterprises by 654.38+0.20 billion yuan.
Ten is to increase financial support for economic growth. Cancel the restrictions on the credit scale of commercial banks, reasonably expand the credit scale, increase credit support for key projects, "agriculture, rural areas and farmers", small and medium-sized enterprises and technological transformation, mergers and acquisitions, and cultivate and consolidate the growth point of consumer credit in a targeted manner.
According to preliminary calculation, by the end of 20 10, the above-mentioned projects will require an investment of about 4 trillion yuan. In order to speed up the construction progress, the meeting decided to increase the central investment by 654.38+00 billion yuan in the fourth quarter of this year, and arrange 20 billion yuan for the post-disaster reconstruction fund in advance next year to promote local and social investment, with a total scale of 400 billion yuan.
Prior to this, the the State Council executive meeting on June 65438+1October 2 1 had approved a number of construction projects, such as roads, airports and nuclear power plants, and decided to speed up the construction progress of the first phase of the Middle Route and East Route of the South-to-North Water Diversion Project.
For the above ten measures, Chen Xingdong, chief economist of BNP Paribas Asia Limited, said in an interview with China Business News that this shows that the China government has fully realized the risks of economic downturn and hopes to stabilize economic growth by stimulating domestic demand. At the same time, this is also the commitment of the China government to the international community. The current policy is only preliminary and there should be follow-up policies.
Dr. Liang, a senior investment strategist, believes that due to the increase in overall expenditure, the supply scale of national debt will also increase next year. Financial expenditure on infrastructure and consumption is conducive to expanding domestic demand. However, the role of these policies depends on their contribution or effectiveness to economic growth. It is worth noting that due to the rising proportion of non-state-owned economy, the focus of fiscal expenditure is tilted towards infrastructure, and its contribution and performance to economic growth may be lower than that of the previous cycle. As for the impact of credit relaxation, because banks are reluctant to lend, its effect may be discounted.
How much social capital investment can fiscal expenditure drive? Wang Zhihao, chief economist of Standard Chartered China, believes that compared with ten years ago, the attractiveness of current financial investment to social funds has declined. 10 years ago, the investment ratio of fiscal funds and driven social funds was 1:2, and a recent report of Standard Chartered Bank estimated that the current investment ratio of fiscal funds and driven social funds was 1: 1 considering the difference in investment returns and risks.
However, Liu Huan, vice president of the School of Taxation of the Central University of Finance and Economics, believes that investment has a multiplier effect, so financial investment should play a greater role in stimulating social investment. He also said that government investment accounted for about 20% of the total investment last year, so in fact, this 4 trillion investment, as long as the financial arrangement is 800 billion to 1 trillion. Moreover, these investments are made in two years, which should not cause too much pressure on the budget balance.
Regarding the problem of insufficient willingness of enterprises to invest, Liu Huan believes that the problem now is not insufficient production, but overcapacity and insufficient orders. Government investment can bring orders to enterprises, and the investment pulling effect at the end of this year will appear next year.
Wang Qing, chief economist of Morgan Stanley Greater China, said yesterday that the market is expected to respond positively to the introduction of this measure. It is expected that various departments will announce more investment details in the coming weeks.