China will make the most of government bonds to develop efficient investment for stable economic performance – Xinhua
Photo taken on Jan. 14, 2021 shows a night view of Lujiazui in Pudong, east China’s Shanghai Municipality. (Xinhua/Fang Zhe)
BEIJING, March 31 (Xinhua) — China will make the most of government bonds to increase effective investment, as part of efforts to consolidate weak links, enhance development momentum and promote growth. stable economy, according to a decision taken at the State Council Executive Meeting chaired by Premier Li Keqiang on Tuesday.
The meeting noted the growing complexity of the international landscape, new challenges facing national development and growing downward pressure on the economy. When formulating macroeconomic policies this year, various changes inside and outside China have already been taken into account forward-looking.
Maintaining a stable functioning of the economy in the first quarter and the first half of the year is crucial to achieving the objective set for the full year. It is imperative to promptly implement the decisions and plans of the Party Central Committee and the policy measures set forth in the government work report.
The task of ensuring stable growth must take on even greater importance. Coordinated measures will be taken to maintain stable growth, promote structural adjustment and carry out reforms.
Policies aimed at maintaining the stability of the economy should be introduced wherever possible, and no policies that adversely affect market expectations will be introduced. Contingency plans to deal with greater uncertainty will be developed.
“Relevant policy measures must be implemented quickly. Tax refund policies should be fully implemented as planned, and enterprises will be supported to overcome difficulties and stabilize and increase jobs,” Li said.
The meeting noted that under the principle of keeping the macroeconomic leverage ratio generally stable, 3.65 trillion yuan of special purpose bonds for local governments will be newly allocated for this year. In a bid to strengthen intercyclical adjustment, an advance quota worth 1.46 trillion yuan had been disbursed at the end of last year in accordance with the law.
Going forward, efforts will be made to deliver the remaining local government debt quota at a faster pace, prioritizing regions with a strong debt service position and enough candidate projects.
“The early debt quota allocated last year will all be issued by the end of May, and the quota set for this year will be all issued by the end of September,” Li said. that investment funds stay with the projects they are assigned to.The launch and construction of projects will be accelerated to generate more economic activity as quickly as possible.
The effectiveness of government bonds will be better highlighted. Bearing in mind the immediate and long-term benefits, investments in improving people’s livelihoods and strengthening areas of weakness will be intensified, and the construction of new infrastructure and other high-level projects that will enhance the sustainability of development will be supported.
The use of special purpose bonds will be expanded as needed. Priority being given to projects relating to transport, energy, environmental protection, social housing and others, public service projects that can generate certain returns will also be supported.
Reform-oriented measures and market-based approaches will be applied to leverage the catalytic role of special purpose bonds to attract more private sector investment and support private business investment.
Treasury bills and local government bonds will be issued in a well-coordinated manner to maintain an appropriate scale of treasury funds and secure the necessary fiscal resources for first-tier governments to implement tax refunds and reductions. taxes and fees and improve people’s livelihoods.
The purchase of treasury bills by foreign medium and long-term funds will be encouraged and the relevant preferential tax policies will be well implemented. The financial system should strengthen collaboration to ensure the orderly issuance of government bonds and support project construction financing.
“Fund management should be strengthened to prevent risk of indebtedness and prevent idleness of funds. The construction of new government buildings in violation of regulations should be strictly prohibited, and no vanity projects will be tolerated,” said Mr. Li. ■