Monday, January 23, 2017

Super budget by 600 billion deficit last year where the money went

Photo: vision China

According to the Treasury's latest, 2016-national public budget revenues of 15.9552 trillion yuan, up 4.5% over the previous year.

Worth noting is that when the annual national public budget expenditure reached 18.7841 trillion yuan, up 6.4% from a year earlier, in March last year, the national people's Congress meeting budget deficit targets by 2.18 trillion yuan out of more than 600 billion yuan.

Over the years, increase the deficit ratio are considered supply side structural reform can provide a more relaxed fiscal policy environment, so as to ensure the social and economic order are not problems because of fiscal reduction.

Indeed, in 2016, China's 2.18 trillion yuan fiscal deficit has 560 billion yuan more than 2015, the deficit ratio increased to 3%. Deficit of more than 2 trillion Yuan will create the highest record since the founding of new China in 1949 and the international deficit line.

There is no doubt that the money where the focus of attention.

Social security and employment has been one of the main spending livelihood field, query interface journalists report found that the Central Government budget, in this regard, 2016, the central finance urban and rural low per capita assistance levels were increased by 5%, 8% on the local benefits.

In the areas of health, basic medical insurance, Government subsidies for urban and rural residents increased from 380 Yuan per person per year to 420 Yuan, individual payment standards increased from 120 Yuan per person per year to 150 Yuan, basic public health service items in annual Government subsidies per capita increased from 40 to 45. CIC Qi bin overseas mergers and acquisitions on

As a senior key part of promoting structural reform on the supply side, the Central Government allocated 100 billion yuan last year awards and subsidies, used to promote the local administration and the central enterprise using mergers, debt restructuring and bankruptcy liquidation mode, speed up dissolving iron and steel, the coal industry overcapacity.

Human Social Affairs Minister Yin Weimin said the money is mainly used for the placement of workers, issues of transfer of workers, skills training and other issues.

In addition, in 2016, the central financial aid funds increased by 20.1 billion yuan, an increase of up to 43.4%, which will facilitate the completion of more than 10 million rural poor out of poverty. Budget reporting requirements these funds not only for the promotion of asset poverty alleviation pilot also supports integration financial-related funds and manpower in poor counties, focus on highlighting the problems of poverty.

Worth noting is that innovation spending way also may be emphasized in the budget report. For example to promote PPP mode to speed up legislative work, making good use of 180 billion yuan Fund to stimulate participation of social capital.

In the expert's view, expanding the fiscal deficit, and does not significantly increase the risk of China's debt.

Director of the Research Institute of fiscal science, Liu Shangxi, China said in an interview with the China Business Journal, China's debt costs have fallen sharply, including local government debt interest payments would not necessarily increase full aperture, on the other, fiscal stimulus to reverse the cyclical economic downturn, increase tax revenues, the Government's expected future cash flows are expected to improve, will relieve the pressure of debt.

However, in the outside world, budget by the national people's Congress examined and adopted to guide Government annual expenditure, should be rigid, not random change. Deficit exceed previous estimates by as much as 600 billion yuan has highlighted China's budget still lack a rigid constraint.

In China, the issue of financial transparency has been the focus of attention. 2016 China promulgated by the finance and Economics Finance report showed that among 31 provinces, there are only two provinces in the pass level, many government departments and local financial accounts or secret, or false reporting with incorrect identification, or too thick.

There is no doubt that fiscal deficits from public funds should be subject to procedures and public scrutiny, only to further improve rigidity of strict accountability mechanisms, effects of eliminating all uncertainty can help departments in its financial information public duties, produces greater pressure and motivation to promote transparent financial comprehensive in-depth.

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