(Source: "China Government Procurement News", 2024-12-27)
Recently, the Central Economic Work Conference was held in Beijing. The meeting made it clear that a "more active fiscal policy" will be implemented for the first time next year, and the "sound monetary policy" that has been implemented for 14 consecutive years will be changed to a "moderately loose monetary policy."
What information do these release? What impact will it have on government procurement?
Act as a "bridgehead" and exert a multiplier effect
"Since 2009, 'active fiscal policy' has been the main tone of my country's fiscal policy. The 'more active fiscal policy' proposed this time shows that stabilizing economic expectations and promoting economic growth have become important goals of fiscal policy , and at the same time, direct intervention in the economy will be increased," said Yuan Cheng, deputy director and researcher of the Department of Finance, School of Economics, Peking University.
When it comes to the impact of policies on government procurement, most experts interviewed believe that "more active fiscal policies" will promote the expansion of government procurement.
“This is because an important role of fiscal policy is to expand government investment and consumption, and accordingly the scale of government procurement will be expanded. In the future, the government may purchase more services and then provide these services to residents , thereby promoting residents’ consumption and driving the development of the consumer service industry,” said Tu Xinquan, Dean of the China WTO Research Institute at the University of International Business and Economics.
Wang Conghu, a professor at the School of Public Administration of Renmin University of China, also holds the same view. He believes that "more active fiscal policy" means increasing investment, especially in infrastructure w88 slotand other areas w88 casino gamesrelated to people's livelihood.
How to straighten out the logic? Jiang Aihua, a professor at the School of Finance and Taxation at the Central University of Finance and Economics, said that "more active fiscal policy" means further leveraging demand through fiscal policy and expanding total social demand.
"This is mainly due to two factors. On the one hand, this time's 'more active fiscal policy' expenditure expansion is very strong, including increasing the deficit ratio, expanding the scale of special bonds, issuing ultra-long-term special government bonds, etc. The funds involved Many, its
According to reports, the expansion of the fiscal deficit is more about ensuring the bottom line of the "three guarantees". For example, in the medical and health field, if the deficit increases, the scale of procurement of medical equipment, drugs, etc. will be expanded accordingly, and these increases will naturally flow to the field of people's livelihood.
"On December 25, the General Office of the State Council issued the "Opinions on Optimizing and Improving the Management Mechanism of Local Government Special Bonds" and implemented a 'negative list' management of special bond investment areas. For example, low-altitude economy, digital economy, quantum technology, etc. and related infrastructure are included in the scope of use of special bond funds, and many of them can be completed through government procurement. This will naturally expand the scale of government procurement," Bai Jingming added.
As one of the "troika" of fiscal expenditure management, how can government procurement play the role of "bridgehead" in "more active fiscal policies"? Yuan Cheng believes that although in terms of absolute scale, the scale of government procurement has declined for four consecutive years, in terms of proportion, the proportion of government procurement in fiscal expenditures has always remained at around 10%.
“It is foreseeable that the scale of government procurement will inevitably expand in the future. I believe that whether it is goods, services or engineering procurement, there will be an increase.” Wang Conghu believes.
Although most experts use the word "inevitable" to affirm the expansion of the scale of government procurement in the future, some experts believe that whether the scale of government procurement will inevitably expand is still subject to some practical conditions. Jiang Aihua believes that on the one hand, the legal scope of my country's government procurement is currently narrow, including only goods, projects and services that are within the centralized procurement catalog or above the procurement quota.
Be brave enough to be the “vanguard” to amplify the transmission effect
"Government Procurement Loan" refers to an unsecured loan provided w88 live casinoby an w88 slotenterprise based on the government procurement contract and procurement reputation. It is characterized by a simplified approval process, lower interest rates than ordinary small and medium-sized enterprise loans, and no need to provide property mortgages or third-party guarantees.
“‘Moderately loose monetary policy’ is definitely a good policy for ‘Zhengcaidai’.” Bai Jingming said that this is because “moderately loose monetary policy” will also cut reserve requirements and interest rates in a timely manner, and even It will be tilted towards small and medium-sized enterprises.
"In fact, 'moderately loose monetary policy' is also aimed at expanding total social demand." Jiang Aihua said that under normal circumstances, loose monetary policy will bring about a reduction in interest rates, and a reduction in interest rates will expand residents' consumption and promote enterprises. Investment etc.
In Wang Conghu’s view, “moderately loose monetary policy” will make loans easier to a certain extent and will be conducive to the further promotion of “government procurement loans”. Whether it is through credit guarantees or capital guarantees, under the "moderately loose monetary policy", suppliers who want to participate in government procurement can obtain loans more conveniently, and some banks will even be more active and proactive in looking for suppliers.
“From the perspective of credit demand, under the ‘moderately loose monetary policy’, ‘Political Procurement Loan’ will be more attractive to small and medium-sized enterprises.” Yuan Cheng said that although there are currently “Political Procurement Loan” platforms in various places, However, there are still problems such as insufficient policy publicity, insufficient willingness of small and medium-sized enterprise suppliers to finance themselves, and the inability to mutually recognize loans from other places. The potential of "government procurement loans" is far from being fully unleashed, and there are many restrictions on the amount and term of financing.
From the perspective of credit supply, Yuan Cheng said that "moderately loose monetary policy" means an increase in liquidity, which will provide more sources of funds for "government procurement loans". At the same time, moderate easing also means the optimization of the credit structure, and the supply of "government procurement loans" for the information industry, intelligent manufacturing and high-tech industries will continue to increase.
Practice a "combination punch" to superimpose policy effects
“From a demand side perspective, promoting the implementation of macroeconomic policies generally means promoting household consumption. w88 online sports bettingThen government procurement w88 casino gamesand ‘government procurement loans’ can all play a positive role in this. ” Tu Xinquan believes that “Government Procurement Loans” are mainly targeted at government procurement suppliers, especially small and medium-sized enterprises, and provide them with financing services.
"In recent years, our country has placed special emphasis on the consistency of macro policy orientations and the implementation of a good policy 'combination punch'. Therefore, it is necessary to strengthen the synergy of the two policies and combine the expansion of the scale of government procurement expenditures with the expansion of the scale of 'government procurement loans'. Superimposed on the multiplier effect of fiscal policy and the transmission effect of monetary policy,” Jiang Aihua said.
“Through the coordinated efforts of fiscal policy and monetary policy, it will effectively promote the expansion of government procurement and stimulate the vitality and innovation capabilities of market entities.” Yuan Cheng believes that the government’s efforts in urban renewal, informatization construction, scientific and technological research and development, etc. The proportion of expenditures in the field will continue to expand.
According to Yuan Cheng, in the field of urban renewal, my country proposed to carry out urban renewal demonstration work in 2024, limiting the direction of financial support to the renovation of old areas, the renewal of underground pipe networks, and the improvement of shortcomings in municipal infrastructure. Previously, government procurement projects in various places have involved urban construction projects such as sponge cities, shantytown renovation, and rainwater and sewage diversion, and they have assumed important responsibilities in them.
"I believe that under the 'more active fiscal policy' and the 'moderately loose monetary policy', the increase in the size of the government procurement budget, especially in the fields of infrastructure construction and public services, will attract more high-quality suppliers to participate . Therefore, we must continue to deepen the reform of the government procurement system, improve the transparency and standardization of the procurement system, and ensure that all types of market entities can participate in government procurement fairly," Yuan Cheng said.
“In short, driven by the dual drive of ‘more active fiscal policy’ and ‘moderately loose monetary policy’, it is expected that the continuous decline in the scale of government procurement over the past four years will be reversed.” Wang Conghu believes.
Attached original text link:https://mp.weixin.qq.com/s/G9DsQ-45U_G65Wt-bv63mA
