Ladies and gentlemen, good afternoon, welcome everyone to attend the State Council policy routine briefing. Recently, the State Council held a standing meeting and listened to financial and financial support for the development of the real economy. In order to help everyone better understand the situation, we are very pleased to invite Mr. Liu Wei, Deputy Minister of Finance, to ask him about the situation. Answer your questions. Also attending today's briefing was Mr. Wang Jianfan, Director of the Taxation Department of the Ministry of Finance.
Let me first introduce Mr. Liu Wei.
Good afternoon, everyone, friends, I am very happy to have this opportunity to participate in this afternoon’s routine briefing to inform you of some specific work of the fiscal policy in supporting the real economy. As the Director just introduced, the 18th executive meeting of the State Council on Monday listened to the report on financial and financial support for the development of the real economy, deployed the role of fiscal and financial policies, supported the expansion of domestic demand, adjusted the structure, and promoted the development of the real economy. work. Below, I will give a brief introduction on the financial support for the development of the real economy.
The continued implementation of a proactive fiscal policy in 2018 is a macro-policy orientation determined by the Party Central Committee and the State Council. Since the beginning of this year, under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, the Ministry of Finance has resolutely implemented the decision-making arrangements of the Party Central Committee and the State Council, and earnestly implemented various measures of active fiscal policy. The national financial operation is in good condition and fiscal revenues have maintained steady and rapid growth. Financial expenditures remained relatively high, and investment in key areas and key links was further increased. Various tax reduction and fee reduction measures were progressing as planned, and the development of the real economy was achieved with remarkable results.
According to the 2018 economic development target set by the Central Economic Work Conference and the "Government Work Report", the national general public budget expenditure budget for this year is 20.98 trillion yuan, an increase of 7.6%; the fiscal deficit is 2.38 trillion yuan, maintaining the scale of the previous year. In addition, local government special bonds not included in the deficit were arranged at 1.35 trillion yuan, an increase of 550 billion yuan over the previous year. From January to June this year, the national general public budget expenditure progress has exceeded the progress of the schedule.
While maintaining a high level of financial investment and expenditure intensity, the main focus of active fiscal policy is reflected in increasing tax cuts and reducing costs, and reducing the cost of the real economy. From 2013 to 2017, the implementation of the reform of the camp has increased the total tax reduction by 2.1 trillion yuan. In addition, the measures to reduce the tax revenue of small and micro enterprises and clean up various charges have alleviated the burden on market entities by more than 3 trillion yuan.
Since the beginning of this year, we have continued to promote VAT reform and reduce the VAT rate in manufacturing, transportation, construction, and basic telecommunications services. According to the statistics of the State Administration of Taxation, as of the end of May, the adjustment of the VAT rate involved a total of 8.95 million VAT general taxpayers. Compared with the pre-adjustment, the net tax reduction of the first month of the reform was 34.8 billion yuan. The introduction of small and micro enterprise tax preferential policies will increase the upper limit of the annual taxable income of small and micro-profit enterprises that enjoy half of the preferential corporate income tax policy, from 500,000 yuan to 1 million yuan. The long-term turnover of high-tech enterprises and high-tech SMEs will be extended from five years to 10 years, reducing the tax burden of innovation enterprises. The vehicle purchase tax will be halved for the trailer carrying goods, and the logistics cost of the enterprise will be reduced. Further clean up the standardization of administrative fees and government funds, and so on.
In order to support the guidance of the real economy to improve quality and efficiency, actively optimize the structure of fiscal expenditure, arrange employment subsidy funds, support stability and promote employment; arrange special funds for the development of small and medium-sized enterprises, focus on supporting small and micro enterprises entrepreneurial innovation base city demonstration; implementation of business guarantee loan interest discount To lower the policy threshold, cancel the restriction that small and micro enterprises can not enjoy the guarantee and discount interest at the same time, and reduce the requirement for the proportion of newly recruited employees in small and micro enterprises from 30% to 25%, and so on.
The State Council executive meeting called for maintaining macroeconomic stability, fiscal policy to serve the real economy more effectively, and more effective in serving the overall macroeconomic situation, and active fiscal policy should be more active. In the next step, the Ministry of Finance will conscientiously implement the decision-making arrangements of the Party Central Committee and the State Council, adhere to the general tone of steady progress, and insist on not engaging in the strong stimulus of “big floods”, focusing on tax reduction and fee reduction to support the development and promotion of small and medium-sized enterprises. Entrepreneurial innovation, stable employment as the focus, precise policy, improve efficiency, strengthen departmental cooperation, strengthen policy coordination, and better support the development of the real economy.
The first is further tax reduction. From 2018 to the end of 2020, the policy of increasing the deduction rate of enterprise R&D expenses to 75% will be expanded from technology-based SMEs to all enterprises, and preliminary estimates will be reduced by 65 billion yuan.
The second is the 113 billion yuan that has been refunded for the value-added tax refunds of the advanced manufacturing, modern service industries and power grid enterprises. It will be basically completed by the end of September and the policy dividend will be released as soon as possible.
The third is to help solve the financing difficulties of small and micro enterprises and accelerate the formation of national financing guarantee funds. Implement the first phase of fund investment of not less than 60 billion yuan, cooperate with provincial financing guarantee and re-guarantee institutions, support the development of financing guarantee industry, expand the scale of financing guarantee business of small and micro enterprises, and strive to achieve 150,000 (times) small micro-support each year. Corporate and new policy goals of 140 billion yuan in loans. We will reward the local government for expanding the scale of financing guarantee for small and micro enterprises and reducing the financing guarantee fees for small and micro enterprises. In conjunction with relevant departments, we will promptly introduce operational measures to increase the credit line of eligible small-scale enterprises and individual industrial and commercial households with exemption from VAT single-family credits from 1 million yuan to 5 million yuan.
The fourth is to strengthen the convergence of relevant parties, speed up the issuance and use of local government special bonds of 1.35 trillion yuan this year, and achieve early results in promoting infrastructure projects under construction.
Thank you all, welcome reporters and friends to ask questions.
Thank you Mr. Liu Wei for his introduction. Let's start asking questions. Please inform the news organization where you are before asking questions.
Economic Daily reporter:
In addition to tax cuts and reductions, what other fiscal policies can effectively serve the real economy? Thank you.
Thank you for your question. I just briefly mentioned a few words in the previous briefing. The positive fiscal policy, especially I want to communicate to the reporters, is that the focus of the active fiscal policy is the tax cuts and reductions determined by the Party Central Committee and the State Council. As a top priority, it puts all the measures for tax reduction and fee reduction into practice. This is an important point of active fiscal policy.
As I mentioned earlier, focusing on the real economy, in addition to tax cuts and fee reductions, we may also establish some mechanisms for local governments to promote the services of small and micro enterprises and serve the real economy to create a good atmosphere. There are several main points here:
The first is to support entrepreneurial innovation and development. Since 2015, the Ministry of Finance, together with the Ministry of Industry and Information Technology and the Ministry of Science and Technology, has supported 30 demonstration cities in two batches to carry out the “Demonstration of Small and Micro Enterprise Venture Innovation Base Cities”. According to preliminary statistics, the small and micro enterprises in the first 15 demonstration cities accumulated a total of 6.69 million new jobs during the three-year demonstration period, with an average annual growth rate of 12.9%.
The second is to help solve the financing difficulties of small and micro enterprises. The implementation of the guarantee loan for interest-guaranteed loans, from 2013 to 2017, the central government accumulatively arranged interest-fixing loans and reward funds of about 44 billion yuan to support hundreds of thousands of small and micro enterprises to obtain low-cost loans, benefiting about 15 million employed people. People.
The third is to handle the relationship between the government and the market. Support for key areas and industries, mainly through the market-based approach, the establishment of government investment funds to instigate private capital into the key areas and weak links of economic and social development.
Next, in addition to further tax cuts, we will help solve the financing difficulties of small and micro enterprises and accelerate the formation of national financing guarantee funds. Implement the first phase of fund investment of not less than 60 billion yuan, cooperate with provincial financing guarantee and re-guarantee institutions, support the development of financing guarantee industry, expand the scale of financing guarantee business of small and micro enterprises, and strive to achieve 150,000 (times) small micro-support each year. Corporate and new policy goals of 140 billion yuan in loans. We will reward the local government for expanding the scale of financing guarantee for small and micro enterprises and reducing the financing guarantee fees for small and micro enterprises. At the same time, strengthen the convergence of relevant parties, accelerate the issuance and use of special bonds of local government of 1.35 trillion yuan this year, and achieve early results in promoting infrastructure projects under construction.
South China Morning Post reporter:
Recently, the director of the Research Bureau of the People's Bank of China wrote an article stating that the Ministry of Finance's implementation of fiscal policy is not aggressive. What is the opinion of the Ministry of Finance on this view? Thank you.
Thank you for your question. Fiscal policy and monetary policy are the two pillars of the macro-control system. Whether it is a proactive fiscal policy or a prudent monetary policy, it is a major macro-policy orientation determined by the Party Central Committee and the State Council. The Ministry of Finance has been unswervingly implementing it. Thank you.
CCTV's CCTV reporter:
Please tell us about the implementation of the tax reduction and reduction policy that was established at the beginning of the year. In addition, at this point in time, what kind of considerations are there to further introduce tax cuts to support the real economy?
Thank you. This is a very good question, because everyone is also concerned. At the beginning of the year, including the "two sessions", the tax cuts and reductions have been raised by 1.1 trillion yuan. This time, I propose to further strengthen this issue. I want to ask my colleague Wang Jianfan. The director came to answer.
Ok, let me briefly introduce it. In this year's "two sessions", Premier Li Keqiang proposed in the government work report to reduce the tax burden by 1.1 trillion yuan, which is the strongest in recent years. After the closing of the "two sessions," the State Council executive meeting successively reviewed and approved relevant measures. The Ministry of Finance, together with the State Administration of Taxation and other departments, acted quickly and seized the operational documents. At present, the personal income tax reform is fulfilling the law-enforcement procedures, advanced manufacturing such as equipment manufacturing, R&D and other modern service industries, and grid companies' VAT refunds at the end of the period are being carried out in an orderly manner. Other relevant policy measures have basically reached the ground. mainly include:
First, on March 28, the State Council executive meeting reviewed and approved the measures to deepen the reform of value-added tax.
Second, on April 4, the State Council executive meeting reviewed and approved measures to reduce fees.
Third, on April 12, April 18, and April 25, the State Council executive meeting successively reviewed and approved other tax reduction measures to further support small and micro enterprises and encourage entrepreneurial innovation.
The above-mentioned policies mainly focus on supporting the development of small and micro enterprises, encouraging innovation and entrepreneurship, and reducing the cost of enterprises. The key points are point-to-face, which plays an important role in stimulating market vitality, reducing corporate burden and promoting high-quality economic development.
In order to make the active fiscal policy more active and respond to the uncertainty of the external environment, the State Council executive meeting on July 23 decided to do a good job of the value-added tax determined by the State Council on the basis of ensuring that the tax burden will be reduced by more than 1.1 trillion yuan. The tax reduction policies such as tax refunds have been implemented and implemented. At the same time, we have adhered to the problem-oriented and introduced new tax reduction measures to effectively reduce the cost of the real economy.
The newly introduced tax reduction measures, that is, the policy of increasing the deduction rate of enterprise R&D expenses to 75%, will be expanded by technology-based SMEs to all enterprises, focusing on technological innovation, and efforts to increase support for R&D investment. The 2008 Corporate Income Tax Law provides for a 50% discount on pre-tax deductions for corporate R&D expenses, ie R&D expenses are deducted before tax at 150% of the actual amount incurred. In recent years, it has repeatedly improved the company's research and development expenses plus deduction policy, and continuously increased support. It mainly includes: relaxing the scope and caliber of research and development expenses, and gradually including R&D personnel “five insurance and one gold”, external R&D personnel labor expenses, research and development-related travel expenses, conference fees, etc. into the deductible deduction range, and canceling the research and development field. The restriction of the catalogue simplifies the auditing process; the cancellation of the entrusted overseas R&D expenses is not subject to the deduction. In particular, in 2017, the deduction rate for research and development expenses for technology-based SMEs will be increased to 75%. This time, the 75% deduction rate will be extended to all enterprises. All enterprises can enjoy 75% deductions for eligible R&D investment, which is more conducive to the implementation of the innovation-driven strategy. Thank you.
Wall Street Journal reporter:
I asked some analysts who felt that the State Council issued a notice this week faster than they expected. These fiscal policies were introduced faster than they expected. It can be seen that China is now using fiscal means to promote economic growth. I want to know how you look at economic growth. Do you feel that the trade war will bring particularly big pressure in the second half of the year, or that you will see what you are doing in the economy, and if you do, some of the leverage reduction? What will work like? What is your coordination with the central bank?
The macroeconomic data of the first half of the year have come out. In fact, the relevant press conference held before the new state office may have been consulted. The introduction of the macroeconomic related indicators in the first half of the year has kept the macro economy in China stable throughout the first half of the year. The momentum. From the financial data, the general public budget revenue can grow by 10.6%, which is closely related to the steady development of our entire economy. I first answer that our operation from January to June is normal. The Chinese economy is generally stable and stable.
Second, why should the fiscal policy be more positive?First of all, the policies that have just been introduced to you are all steadily advanced under the major policies set by the Central Economic Work Conference and the government work report. We are not going to make major ups and downs. The State Council executive meeting called for camera pre-adjustment and fine-tuning according to the changes in the situation.
I just notified a few additions, even though we were outside the budget tray at the beginning of the year. For example, we have expanded the R&D expenses by 75% to all enterprises. These are the further additions under the overall logic at the beginning of the year. It is not a major fluctuation in the macro economy. We have not taken drastic and blitz-like measures. Here I want to say "more positive". As a comrade of the Ministry of Finance, I understand that "more active" is three things. First, it can be fine-tuned according to the new situation. You can add some policy measures and do some additions. . Second, we have now incorporated some of the work of the plan. Some major policies must be strengthened in the process of landing. Third, the reporter’s friends are concerned. The policies of our various departments should be linked and coordinated. The fiscal policy and monetary policy are jointly promoted and coordinated. I also talked about policy coordination in the past. I just mentioned that financing is difficult and financing is expensive. The fiscal policy should be coordinated with the acceleration of the establishment of a financing guarantee fund to raise more than 60 billion yuan in the first phase, and cooperate with provincial-level financing guarantees and re-guarantee institutions to support the development of the financing guarantee industry. At the same time, we have allocated some fiscal incentives, which is also a reflection of the coordination between finance and monetary policy. There is also the issuance of local government bonds, which is also a match for the entire capital of the market. Therefore, the policies are not isolated and require everyone to work together.
Regarding the Sino-US economic and trade frictions, the Ministry of Foreign Affairs and the Ministry of Commerce have already had a clear attitude. Thank you.
China Daily reporter:
Minister Liu, you mentioned the 1.35 trillion local government special bonds. At the State Council executive meeting, it is required to further accelerate the issuance and use. Is there any more detailed information in this regard? Thank you.
Active fiscal policy, we mainly focus on reducing taxes and reducing fees, and second, maintaining expenditure intensity. We emphasize the use of expenditures in key areas, key links, and people's livelihood. I mentioned in the previous report that this year's National People's Congress The fiscal deficit was approved at 2.38 trillion yuan, keeping the scale of 2017 unchanged. Although the fiscal deficit rate has dropped from 3% to 2.6%, the scale of the fiscal deficit has not decreased, mainly because the scale of China's GDP has increased. We arrange local government bonds, in addition to the 830 billion yuan of general bonds that include fiscal deficits, and 1.35 trillion yuan of local government special bonds. This is an institutional arrangement outside the fiscal deficit. But what I want to emphasize is that these local government bonds are within the limits approved by the National People's Congress. It is not how the locals want to send them. It must be strictly controlled within the statutory limits. This year, the newly added local government special bonds amounted to 1.35 trillion yuan, an increase of 550 billion yuan over 2017. Together with the general bonds of 830 billion yuan, all of them set the direction of key expenditures. They must support the coordinated development of Beijing-Tianjin-Hebei and the Yangtze River Economic Belt. Key areas such as strategy and precision poverty alleviation, eco-environmental protection, and shantytown renovation are prioritized for the smooth construction of projects under construction.
In accordance with the decision-making arrangements of the Party Central Committee and the State Council, we are strictly controlling the implicit debts of local governments. We must require local governments not to violate the rules and arbitrarily raise debts. At the same time, we must open a "front door" for legal and compliance debts. This is the 8300 approved by the National People's Congress. The special bonds of 100 million yuan and the special bonds of 1.35 trillion yuan are in the direction of key expenditures determined by the state. It is hoped that local governments will use the funds to make good use of the bonds. The word "accelerate" is based on this year's budget arrangement. It is hoped that in the second half of the year, the third quarter and the fourth quarter will be the unreleased part of the 1.35 trillion yuan special bond. According to the project preparation situation, the local government will market according to the situation. In principle, the financial institutions are negotiated in a smooth and orderly manner. We emphasize the need to effectively protect the financing needs of projects under construction, but these projects must be in line with relevant policies and incorporate relevant plans. They are projects that should be promoted locally. They should not be blindly spread beyond the financial level, and avoid new hiddenness. debt. Thank you!
Thanks again to the two publishers, and thank you all. Today’s briefing is over.