China: In 2010 Focused on Six Initiatives to Safeguard and Improve People\’s Livelihood
According to Ministry of Finance website reported January 10, the National Financial Work Conference held in Beijing. Party secretary of the Ministry of Finance, Minister Xie attended the conference and delivered speeches. Xie pointed out that in 2009, the financial departments at all levels of service closely around the overall situation of reform, development and stability, conscientiously implement the Party Central Committee and State Council\’s decisions and plans, give full play to its fiscal functions and full implementation of the deal with the impact of the international financial crisis package, a solid implementation of the positive fiscal policy, in order to achieve increased protection, adjusting structure, promoting reform, benefits and make a positive contribution to people\’s livelihood. At the same time, and effectively strengthen financial management, reasonable grasp the intensity and pace of policy implementation, and actively prevent and control financial risks, and vigorously promote the financial reform and development of its own. Especially in the face of a serious impact on the international financial crisis, economic growth is slowing down, enterprise efficiency decline, large-scale implementation of structural policy of tax cuts and other challenges brought about, pay close attention to revenue and expenditure management, the successful completion of annual financial revenue and expenditure budget for target. National revenue is expected to reach 6.8477 trillion yuan, an increase of 11.7%. Fiscal deficit in the National People\’s Congress approved the budget.
Xie said that to effectively cope with the international financial crisis, to curb the momentum of economic growth fell in 2009, the financial sector efforts to expand investment demand, a substantial increase in public investment, strengthening of key construction. The focus for rural livelihood projects, education, health care and other social undertakings, protection of housing, energy-saving emission reduction and ecological construction, business innovation and structural adjustment, major infrastructure construction and post-Wenchuan earthquake restoration and reconstruction and so on. In conjunction with relevant departments to establish coordination mechanisms to expand domestic demand to strengthen the central government investment in unified leadership, coordinate and supervise the inspection, to improve resource allocation mechanism to ensure the effective use of funds according to regulations purposes. And localities have also adopted various measures to increase government investment. Local government bonds issued 200 billion yuan, better protect the public welfare of the local government central investment projects, matching funds required. These investments directly increases the immediate demand, driven by private investment and consumption, to ease some of the industries and enterprises in production and management difficulties, but also strengthened the weak links in economic and social development, in order to lay a solid foundation for long-term development.
Increase in urban and rural residents, especially low-income people\’s income, increased spending power of residents. Subsidies to farmers intensified their efforts in support of a more substantial increase in the minimum grain purchase prices to promote increased their income. Guaranteeing that the object to improve urban and rural areas, business groups such as retirees and receiving preferential treatments and the level of subsidies. Introduced a policy of forceful, the masses benefit from the promotion of a wide range of home appliances, automotive, energy-saving measures such as product consumption. Displacement of 1.6 liters and below, the reduced rate of 5% levy temporary passenger vehicle purchase tax, the implementation of home appliances to the countryside, auto appliances to the countryside, as well as trade-in vehicle policies, and continuously improved the relevant operational methods to improve the use of financial subsidies efficiency. Home appliances to the countryside is expected to reach 32 million units sales, driving consumption of more than 150 billion yuan; car sales reached 13 million, an increase of 38.5%.
Combination of reform and optimize the taxation system, the implementation of structural tax cuts. In the nationwide implementation of the consumption-based value-added tax, improve the value-added tax system, adjusting the criteria for the classification of small-scale taxpayers, reduce small-scale VAT taxpayers, the rate of levy, encourage enterprises to expand investment, speed up transformation. The smooth progress of refined oil tax reform, fair tax burden, promoting energy-saving emission reduction, the promotion of scientific development. The transfer of part of the housing tentative business tax relief for one year. Further improve the textile, clothing, petrochemicals, electronic information products such as the export tax rebate rate, adjusted several times some of the goods import and export tariffs. Cancellation and stop collecting 100 items of administrative fees. Continue to implement in 2008 has implemented a series of tax breaks. Is expected to implement in 2009 a total of tax reduction and exemption policies to reduce the burden on businesses and residents of about 500 billion yuan, effectively promote the enterprises to expand investment and stimulate consumption.
Promoting coordinated regional development to implement the fiscal and taxation policies. Three Rivers with a significant protection of ecological protection planning, transfer payments by raising the proportion of subsidy to enhance the development and limitations prohibit the development of regional public services provided by the Government\’s financial support capabilities. Increase transfer payments to support the resource-exhausted cities to resolve the historical legacy of the social burdens. Increase in ethnic minority areas, major grain-producing areas and border areas of transfer payments.
Accelerate the implementation of science and technology major projects. In support of national (focus) laboratories and related research institutions, universities, research conditions and capacity-building to promote the public welfare sector to carry out scientific research. The use of discount and import tax preferential policies to support the implementation of key industries to adjust the revitalization plan. A substantial increase in the size of special funds for SME development, and guide the security institutions to expand their SME loan guarantee business, the promotion of SMEs in technological innovation, structural adjustment and professional development. To support financial institutions to meet the requirements of small and medium enterprises to restructure non-performing loans and relief. The use of the central foreign trade development fund to support policies to promote the service outsourcing industry and SMEs in international markets
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