(Source: "China Financial News" 2025-03-08)
“This year’s budget report reflects the strategic continuity of my country’s fiscal policy. Compared with the tone of ‘appropriately increasing efforts, improving quality and efficiency’ in 2024, in 2025 it will shift to ‘continuous efforts and more powerful efforts’, which not only maintains policy coherence, but also strengthens unconventional countercyclical adjustments, demonstrating stability. Dynamic coordination of growth and risk prevention. "Mao Jie, a professor at the w88 casino of International Economics and w88 at the w88 casino, said that this is conducive to maximizing the effectiveness of already introduced policies, and timely introduction of new and powerful policies, consistent and continuous efforts, and at the same time making full use of policy space to improve the forward-looking, pertinence and effectiveness of regulation.
Budget report data shows that the national general public budget revenue in 2024 will be 21.97 trillion yuan, accounting for 98.1% of the budget, an increase of 1.3% over 2023. The national general public budget expenditure was 28.46 trillion yuan, completing 99.7% of the budget, an increase of 3.6%. Total revenue and expenditure were balanced and in line with the budget.
“The implementation of the 2024 fiscal budget fully reflects the orientation of proactive fiscal policies to improve quality and efficiency, and provides strong support for promoting economic recovery and high-quality development.” Mao Jie believes that this is reflected in two aspects. First, it accurately focuses on stable growth and high-quality development, providing a strong guarantee for expenditures in key areas. We successfully issued 1 trillion yuan of super-long-term special treasury bonds and continued to support the implementation of "double" projects and "two new" policies; we actively supported the construction of a technologically powerful country and accelerated the cultivation of new productive forces; we strengthened basic people's livelihood protection, continued to promote equalization of basic public services, and received further support in social security, medical care, education and other fields. The second is to effectively prevent and resolve risks in key areas. The local government debt risk resolution mechanism has been gradually improved, and debt resources have been coordinated through multiple channels to promote the implementation of a package debt resolution plan; major financial risks have been collaboratively prevented and resolved, and a number of high-risk financial institutions have been disposed of in cooperation, thus firmly guarding the bottom line of preventing systemic risks.
Budget report data shows that the total expenditure of the government’s “four accounts” in 2025 will exceed 50 trillion yuan. Among them, people's livelihood expenditures such as education and elderly care have grown steadily, reflecting the people's livelihood orientation of further strengthening macro policies this year. Increase efforts to boost consumption and support technological innovation and the construction of modern industrial systems to enhance development potential and promote high-quality economic development.
“This year’s budget arrangements and fiscal policies reflect the major decisions and arrangements of the Party Central Committee and the State Council in many aspects, and reflect the important requirements of my country’s current economic and social development.” Mao Jie said.
In terms of the overall tone, this year’s fiscal policy should be more proactive, continue to use force, and be more effective. The first is to increase the deficit ratio and expand the deficit scale, which will further strengthen the intensity and efficiency of fiscal expenditure and ensure the effective implementation of proactive fiscal policies. The second is to further expand the scale of government bonds and increase the special debt limit of local governments by 4.4 trillion yuan to support local governments to increase efforts to make up for shortcomings in key areas and further tilt toward the implementation of major regional strategies, the development of new productive forces, and the promotion of high-quality development, providing more support for stabilizing growth and adjusting structures.
“In addition, people’s livelihood orientation has become more prominent, with special emphasis on boosting consumption.” Mao Jie said that in 2025, the central government will comprehensively use fiscal and taxation policy tools to promote the implementation of special actions to boost consumption. We will increase efforts to protect people's livelihood, increase residents' income, and promote consumption upgrades. Arrange 300 billion yuan of super-long-term special government bonds to support the replacement of old consumer goods with new ones, expand policy coverage and optimize the subsidy application process, leverage bulk consumption, and promote more resources to "invest in people" so that fiscal policies can better benefit people's livelihood.
“However, it must also be noted that under the current pressure of tight fiscal balance, insisting that party and government agencies live a tight life is not only a pragmatic move to deal with the contradiction between revenue and expenditure, but also an important path to promote the modernization of fiscal governance.” Mao Jie believes that this arrangement reflects the determination to “turn inwards” reform. By reducing non-essential administrative expenses, strengthening zero-based budget management and other measures, limited financial resources will be prioritized in areas such as technological innovation and people’s livelihood security, which will help alleviate revenue and expenditure contradictions and optimize resource allocation. However, we need to be careful not to adopt a "one size fits all" approach to avoid affecting the ability to provide public services at the grassroots level.
“Overall, my country’s fiscal policy has moved from ‘total expansion’ to a new stage of ‘structural optimization and efficiency improvement’, which reflects the increasing support for high-quality development from my country’s fiscal revenue and expenditure, and the increasing maturity of the fiscal system in stabilizing growth, promoting innovation, preventing risks, and sustaining balance and coordination,” Mao Jie said.
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