Financial support for high-quality development Lan Fo’an introduces five aspects of work

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Lan Fo’an, China’s Minister of Finance, said at the 2024 Annual Meeting of the China Development Forum that opened on the 24th that in the new year, the Ministry of Finance will focus on promoting high-quality development, cultivating new productive forces, and strengthening cross-cyclical and counter-cyclical adjustments. We must coordinate and resolve cyclical and structural problems in economic development, organically combine supply-side reform with demand-side management, and promote stable and healthy economic and social development.

The annual meeting was held shortly after the two sessions of China’s National Congress. Topics such as the momentum and prospects for China’s sustainable development and China’s macro policy orientation became the focus of the participants. The Central Economic Work Conference at the end of last year made it clear that the proactive fiscal policy in 2024 should be appropriately intensified and improved in quality and efficiency. The Chinese Government Work Report further made arrangements and arrangements for the implementation of proactive fiscal policies.

The deficit rate is set at 3%, with the deficit reaching 4.06 trillion yuan; new local government special bonds are 3.9 trillion yuan, and new issuance of ultra-long-term special treasury bonds is 1 trillion yuan; the central government’s transfer payments to local governments are 10.2 trillion yuan, with the same figure The caliber increased by 4.1%… Citing a series of data, Lan Fo’an introduced to guests at home and abroad how China’s proactive fiscal policy this year will “appropriately increase the intensity, improve quality and efficiency.”

  On March 24, Finance Minister Lan Fo’an spoke at the 2024 annual meeting of the China Development Forum.Photo by Xinhua News Agency reporter Li Xin

Specifically, how will finance support high-quality development? Lan Fo’an said that we will focus on five aspects of work.

——Support the accelerated development of new productive forces and inject strong momentum into high-quality development.

Developing new productive forces is an intrinsic requirement and an important focus to promote high-quality development. The characteristic of new productive forces is innovation. Lan Fo’an said that in recent years, the Ministry of Finance has insisted on prioritizing scientific and technological innovation as a key area. Driven by the guidance of fiscal funds, social R&D expenditures have ranked second in the world, with an average annual growth rate of more than 10%. The next step will be to strengthen policy integration, increase support for innovative development, promote self-reliance and self-reliance in high-level science and technology, coordinate the promotion of the upgrading of traditional industries, the growth of emerging industries, and the cultivation of future industries, develop new productive forces according to local conditions, and create new momentum and new advantages for development.

——Support the expansion of effective demand and enhance the endogenous power of development.

In 2023, China’s final consumption contribution rate will reach 82.5%, driving economic growth by 4.3 percentage points. Lan Fo’an said that in the next step, the Ministry of Finance will continue to organically combine the strategy of expanding domestic demand with deepening supply-side structural reform, expand effective investment, stimulate potential consumption, and enhance the role of domestic demand in driving economic growth.

Recently, the State Council issued the “Action Plan for Promoting Large-Scale Equipment Updates and Trade-in of Consumer Goods.” “We will adhere to the linkage between central finance and local finance to support large-scale equipment updates and the trade-in of consumer goods.” Lan Fo’an said that the Ministry of Finance will also actively promote the construction of a unified national market and provide tax incentives and government procurement. All business entities are treated equally, support is given to consolidating the fundamentals of foreign trade and foreign investment, and enhance the linkage effect of two resources in domestic and international markets.

——Support the improvement of people’s livelihood and well-being and allow all people to share the fruits of development.

As for how to divide the fiscal “cake” well, Lan Fo’an said that the Ministry of Finance will adhere to both protection and pressure, and allocate more financial resources for people’s livelihood areas such as education, medical care, social security, and environmental protection, and steadily improve the level of people’s livelihood security during development. . In the next step, we will continue to do our best and within our capabilities, strengthen basic, universally beneficial, and comprehensive people’s livelihood construction, and continue to enhance the people’s sense of gain, happiness, and security.

——Support the expansion of high-level opening up to the outside world and actively participate in global economic governance.

“In today’s era of economic globalization, there are no isolated islands, and openness is the only way to prosperity.” Lan Fo’an said that the Ministry of Finance will strengthen international financial exchanges and cooperation and strengthen communication with major economies on macro policies. coordinate, practice true multilateralism, deepen practical cooperation with multilateral development institutions, meet each other halfway and achieve mutual success on the stage of open cooperation, and jointly promote global economic recovery and development; actively promote the establishment of an effective and universally accepted by all parties Global economic governance rules and systems promote economic globalization in a more open, inclusive, universally beneficial and balanced direction.

——Deepen the reform of the fiscal and taxation system and enhance the capacity for sustainable development.

To realize Chinese-style modernization, we need to combine mid- to long-term and short-term goals and unleash the potential and enthusiasm of all aspects. “In accordance with the deployment of the Party Central Committee and the State Council, we will actively plan a new round of fiscal and taxation system reform, establish and improve a modern fiscal system that is compatible with Chinese modernization, effectively prevent fiscal risks, and continuously enhance fiscal sustainability.” Lan Fo’an said.

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