Macro policies need to work together to expand demand index | entity | demand
In May, the Purchasing Managers Index for the manufacturing industry continued to decline, while the Consumer Price Index for residents decreased month on month and slightly increased year-on-year. The Producer Price Index for industrial producers continued to decline both month on month and year-on-year. A series of indicators indicate that current demand continues to recover, but overall it is weak, and the foundation for economic recovery and development still needs to be consolidated.
As two major tools for macroeconomic regulation, fiscal policy and monetary policy can both regulate the level of total social demand. The two should fully leverage the role of countercyclical and cross cyclical regulation, strengthen coordination and cooperation, especially in driving investment and reducing enterprise costs, and play a "combination punch" to enhance the endogenous driving force of economic development and promote sustained improvement in economic operation.
The Central Political Bureau meeting held at the end of April emphasized that active fiscal policies should be strengthened and improved, and prudent monetary policies should be precise and powerful, forming a joint force to expand demand. From this year's situation, fiscal and monetary policies have made significant efforts to expand domestic demand. The fiscal expenditure has maintained a high intensity, with a year-on-year growth of 6.8% in the first four months, which is much higher than the growth rate of income. As an important tool to drive effective investment, special bonds are accelerating their issuance and use, and a large number of projects that benefit people's livelihoods, address weaknesses, and strengthen weak areas are being implemented. Monetary policy maintains reasonable credit growth, uses various methods to inject liquidity, and ensures reasonable and sufficient market liquidity.
Currently, the external environment is becoming more severe and complex, domestic demand is still insufficient, household consumption needs to be boosted, and private investment is still relatively weak. Therefore, macroeconomic policies cannot be relaxed, and it is necessary to continue to increase demand and provide stronger support for the real economy.
Fiscal expenditure should continue to be maintained at a relatively high level. In the situation of tight balance between income and expenditure, it is necessary to strengthen the overall planning of financial resources, ensure expenditure intensity, prioritize the recovery and expansion of consumption, increase household income through multiple channels, increase social security, transfer payments and other adjustments, and make every effort to enrich the "money bag" of residents, enhance expectations for the future, and fully unleash consumption potential. Recently, relevant departments have launched policies to support new energy vehicles going to rural areas and promote the consumption of green and intelligent home appliances. Some places have issued consumption vouchers and stimulated residents' consumption enthusiasm through government subsidies, achieving good results. Fiscal promotion of consumption should focus on precise policies, using precious funds on the cutting edge, while supporting consumption in key areas such as automobiles, home appliances, catering, and tourism, exploring new growth points, and fully amplifying the leverage effect of fiscal funds.
To better leverage the role of special bonds in allocating thousands of pounds. Since the beginning of this year, various regions have made good use of the newly issued debt limits, issued and used them early, which has played an important role in expanding effective investment. Recently, many provinces and cities have adjusted their budgets based on the annual new debt limit, further clarifying the focus of special bond support. Each region should make good use of the quota, arrange issuance plans reasonably, accelerate the use of bond funds, encourage and attract more private capital to participate, and quickly form a physical workload. At the same time, the concept of performance should be integrated throughout investment, continuously improving project quality, leveraging bond funding efficiency, and preventing blind expansion of investment.
Efforts should be made to reduce enterprise costs, better alleviate difficulties for business entities, stabilize expectations, and boost confidence. In the first four months of this year, the country added 468.9 billion yuan in tax reductions and deferred tax refunds, effectively reducing the burden on business entities. Next, we need to strengthen the tracking and effectiveness of tax and fee support policies, optimize implementation measures, respond to the concerns of business entities, enhance accuracy and targeting, and increase support for small and medium-sized enterprises, scientific and technological innovation, etc. At the same time, we will continue to create a favorable monetary and financial environment, comprehensively utilize various monetary policy tools, maintain reasonable and sufficient liquidity, promote stable and reduced financing costs for operating entities, and effectively support the development of the real economy.
