Play a Good Policy Combination Fist - Interpretation of Macro Policy Focus Points by Four Departments Director | Strength | Department

Beijing, August 4th (Xinhua News Agency) - Playing a Good Policy "Combination Fist" - Interpretation of Macro Policy Focus by Four Departments

Xinhua News Agency reporter

Since the beginning of this year, China's economy has generally rebounded and improved, but the operation of the economy is also facing new difficulties and challenges. How can macroeconomic policies be more effective in promoting sustained improvement in economic performance? On August 4th, the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China, and the State Administration of Taxation jointly held a press conference to introduce the main focus of macroeconomic policies for the next step.

Plan and research more targeted and powerful reserve policies

Yuan Da, Deputy Secretary General of the National Development and Reform Commission and Director of the Comprehensive Department, stated that the National Development and Reform Commission will work with relevant parties to accurately and effectively implement macroeconomic regulation, organize the continuation of phased policies, continuously plan and study a batch of more targeted and powerful reserve policies, and timely introduce and implement them in batches according to changes in the situation.

In terms of expanding domestic demand, Yuan Da introduced the need to implement a series of policies to restore and expand consumption, and vigorously stimulate the vitality of private investment. In addition, we will strengthen policy reserves in better meeting the rigid and improved housing needs of residents, actively expanding effective investment, and continuously unleashing the potential of the super large scale market.

Yuan Da also stated that we need to strengthen and optimize the real economy, promote high-level technological self-reliance and self-improvement, continue to deepen reform and opening up, effectively ensure the improvement of people's livelihoods, and prevent and resolve risks in key areas.

Monetary policy has sufficient policy space

Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, introduced that since the beginning of this year, a prudent monetary policy has been precise and effective, with increased efforts in countercyclical adjustment, maintaining reasonable and sufficient liquidity, continuously optimizing credit structure, and promoting sustained economic recovery and improvement.

In the first half of the year, the People's Bank of China lowered reserve requirements by 0.25 percentage points and released long-term liquidity exceeding 500 billion yuan; At the end of June, the broad money supply increased by 11.3% year-on-year, maintaining a high level; Guiding the loan market to lower quoted interest rates, the weighted average interest rate for corporate loans in June dropped to 3.95%

"In recent years, China has adhered to the implementation of a prudent monetary policy, with sufficient policy space, rich policy tools, confidence, conditions, and ability to cope with various risks and challenges." Zou Lan said that the People's Bank of China will continue to strengthen countercyclical regulation and policy reserves, implement existing monetary policy tools, extend the policy implementation period for areas where structural contradictions are still prominent, and take multiple measures to consolidate policy effectiveness. If necessary, new tools can be created to continuously support key areas and weak links such as inclusive finance and green low-carbon.

When it comes to the space for further interest rate and reserve requirement cuts, Zou Lan said that the People's Bank of China will comprehensively evaluate the deposit reserve ratio policy based on the progress of policy tool use and the medium - and long-term liquidity situation, in order to maintain the reasonable and sufficient liquidity of the banking system. At the same time, scientifically and reasonably grasp the level of interest rates, balance growth and risk, internal and external factors, prevent fund arbitrage and idle, improve policy transmission efficiency, and enhance the ability of finance to continuously support the real economy.

Continuation and optimization of multiple tax and fee preferential policies

Making follow-up arrangements for the phased policies that will expire in the next two years is of great significance for enterprises to stabilize their expectations, boost confidence, and arrange investment and operation effectively.

"At present, China's development is facing many uncertain and unpredictable factors, and small and micro enterprises and individual businesses still face many difficulties." Wei Yan, Deputy Director of the Taxation Department of the Ministry of Finance, said that the recently held State Council executive meeting deployed and arranged 10 tax and fee preferential policies related to small and micro enterprises and individual businesses.

On the one hand, the four phased policies will be uniformly implemented until the end of 2027, based on optimization, improvement, and increased support. For example, reducing the scope of personal income tax levied on individual industrial and commercial households by half, adjusting the annual taxable income from no more than 1 million yuan to no more than 2 million yuan, etc.

On the other hand, the other six phased policies will be continued until the end of 2027. Specifically, it includes tax incentives for small-scale taxpayers, small loans, financing guarantees and re guarantees, loan contract tax incentives, small and micro enterprise income tax incentives, and entrepreneurial investment tax incentives.

"The implementation of these policies will truly support the recovery and development of small and micro enterprises and individual businesses, better boost confidence, and create a favorable environment for the development of the private economy," said Wei Yan.

Enable "policy seekers" and "policy delivery"

In the first half of the year, the country added 927.9 billion yuan in tax reduction and fee deferral, providing strong support for sustained economic recovery and overall recovery.

"Recently, there have been many tax and fee policy projects that have been continuously optimized and improved, covering a wide range of fields and lasting for a long time. Some policies still need to be traced back to January 1st of this year, which puts higher requirements on policy implementation." said Luo Tianshu, Chief Accountant of the State Administration of Taxation.

Luo Tianshu stated that on the basis of comprehensive policy promotion, the tax department will play a role in tax big data, comprehensively screen taxpayers who meet policy conditions, quickly carry out "one-on-one" precise push, and strive to make "policy seekers" and "policy delivery to the door".

Promote strengthened policy coordination and work collaboration among various departments

How to improve policy synergy? Yuan Da stated that the National Development and Reform Commission, in conjunction with relevant parties, will adhere to a problem oriented approach, strengthen overall planning and coordination, and effectively combine macroeconomic policies.

Yuan Da introduced that we need to strengthen the analysis and judgment of the economic situation, and grasp the timing, intensity, and pace of policy implementation. Further improve the regular communication and exchange mechanism between government departments and enterprises, and listen to the real situation of enterprise operation and development. At the same time, we will increase the intensity of policy promotion and interpretation.

Yuan Da also stated that before each department formulates and releases policy documents, an evaluation of the consistency between the content and timing of the policy documents and the macroeconomic policy orientation should be carried out to promote strengthened policy coordination and work collaboration among departments, prevent the occurrence of "synthesis errors", and maintain a stable and predictable macroeconomic policy environment.

"With the continuous manifestation of the effects of various policies of 'combination boxing', the economy will maintain a stable and positive trend in the second half of the year on the basis of continuous recovery in the first half." Yuan Da said.