Many places have been hit by many factors, resulting in a decline in fiscal revenue. Large-scale VAT refund is one of the main reasons for the decrease of local fiscal revenue. From April to May, the scale of tax refund reached 1.34 trillion yuan. Many places have been hit by many factors, and their fiscal revenue has declined.
Many places have been hit by many factors, and their fiscal revenue has declined. 1 affected by the tax rebate of 2.64 trillion yuan and the epidemic situation. This year, the fiscal revenue of many places has rarely declined, while the rigid expenditure has increased instead of decreasing, and the contradiction between revenue and expenditure has increased, exceeding the expectations of some places at the beginning of the year.
Recently, various provinces and cities have intensively adjusted their budgets, which is a routine move, mainly to increase borrowing debts according to law. However, Chongqing and other places have made some new moves. In order to cope with the revenue and expenditure gap caused by tax refund and tax reduction, measures such as optimizing the fiscal expenditure structure and compressing the general government expenditure have been taken to make up the income gap and support people's livelihood.
A number of municipal financial people told CBN that they are already considering reducing budget revenue and expenditure, including reducing general government expenditure and some project expenditures, and using funds for epidemic prevention and control, people's livelihood and other fields.
The budget needs to be adjusted according to the difference between income and expenditure.
Provinces and cities generally determine the current budget at the beginning of the year. At that time, many places did not expect that the scale of tax refund, tax reduction and fee reduction this year was as high as 2.64 trillion yuan, reaching the highest value in history. This has not only reduced the burden on enterprises, but also caused the reduction of fiscal revenue, the unexpected impact of the epidemic, the downturn in Russia and Ukraine, the overall decline in land market and local fiscal revenue.
According to the data of the Ministry of Finance, in the first five months of this year, the local general public budget revenue was about 4.62 trillion yuan, down 8.9% year-on-year. The budget revenue of local government funds at this level is about 2.05 trillion yuan, down 27.6% year-on-year.
In order to make up for the decrease of local fiscal revenue, the central government increased the transfer payment to local governments this year, and the scale approached 10 billion yuan, a record high in recent years. Most of the tax refund, tax reduction and fee reduction in the whole year are actually borne by the central finance. However, due to the unrelenting rigid expenditure on people's livelihood, debt and epidemic prevention and control, the contradiction between fiscal revenue and expenditure in many places has increased.
Recently, various localities have intensively adjusted their budgets, mainly because the Ministry of Finance has issued new debt quotas for all localities throughout the year. All localities need to incorporate them into their budgets according to law and adjust the corresponding budgetary revenues and expenditures. However, in addition to this routine action, Chongqing and other places also adjusted the expenditure budget at the beginning of the year according to the latest financial revenue and expenditure situation.
According to the Report of Chongqing Municipal People's Government on Municipal Budget Adjustment Plan in 2022 (hereinafter referred to as the report), on the basis of comprehensive revenue reduction forecast and central subsidy, there is still a financial gap at the municipal level in Chongqing. In order to cope with the decrease in income, Chongqing plans to make greater efforts to reduce non-emergency and non-rigid expenditures. The expenditure budget of the financial arrangement at the city level has been reduced by 5 billion yuan except for the rigid expenditures such as wages, operation and basic livelihood.
Among them, Chongqing reduced public funds according to the per capita standard of 6.5438+0 million yuan; For general projects, according to the per capita expenditure level, reduce the classification and grading; For key special projects, factors such as carry-over balance, implementation progress and performance evaluation results are comprehensively considered for reduction.
According to the report, the above-mentioned reduction of 5 billion yuan was used to supplement the budget stabilization fund. In the second half of this year, according to the actual implementation, the budget will be used to adjust the fund balance and narrow the gap.
According to the data of Chongqing Finance Bureau, in the first five months of this year, the general public budget revenue of the city decreased by14.9% year-on-year; The budget revenue of government funds in the city decreased by 46.8% year-on-year. The decline of these two incomes is obviously greater than the local average mentioned above.
Not only Chongqing, but also Liu Xiaomei, director of Suzhou Finance Bureau, recently made a report on Suzhou's 2022 budget adjustment plan (draft), saying that the contradiction between fiscal revenue and expenditure in the whole city is very prominent, and it is necessary to optimize and adjust the budget at the beginning of the year.
According to the above-mentioned Suzhou budget adjustment report, in terms of income, considering that with the economic operation entering the upward recovery period, the fiscal revenue is expected to rise steadily, and the tax reduction and extension policies are still uncertain, the revenue budget will not be adjusted for the time being.
In terms of fiscal expenditure, Suzhou only makes structural adjustment except issuing bonds to increase budgetary expenditure. The main measures are: reducing public funds, official reception fees, conference fees, training fees, and funds for going abroad on business; Reduce the progress payment of various projects affected by the epidemic; Pursue and reduce all kinds of non-rigid and non-urgent project expenditures, and make overall plans for emergency needs such as epidemic situation and getting rid of difficulties.
Wang Zhenyu, dean of the Institute of Local Finance of Liaoning University, told CBN that it is not common to reduce the expenditure budget at present, because the local budgets at the beginning of the year are very cautious, and many expenditures are mandatory for people's livelihood. With the relief of the epidemic and more accurate epidemic prevention policies, the economic recovery in June and the whole year created conditions for local governments to complete the annual revenue budget.
Public information in various places shows that with the decline of income, many local governments have stepped up efforts to reduce general expenditures.
For example, at the end of June, Han Jun, deputy secretary of Jilin Provincial Party Committee and governor, went to the Provincial Department of Finance and the Provincial Taxation Bureau for investigation, stressing that we should persist in living a tight life, weave a "barbed wire", lay a good "iron abacus", be a good "iron rooster", practise economy, advocate simplicity, refrain from extravagance and waste, vigorously reduce non-rigid and non-emergency expenditures, and use limited funds in the cutting edge.
Luo Zhiheng, chief economist of Yuekai Securities, told CBN that the local financial situation is extremely tight in the context of the unexpected impact of the epidemic this year and the downward income from land transfer, and the contradiction between revenue and expenditure in the next stage, especially in the fourth quarter, will be significantly increased. Therefore, in the future, the local government's adjustment of revenue and expenditure is expected to gradually increase. By cutting non-rigid and necessary expenditures and optimizing the expenditure structure, local governments have to maintain pressure.
Recently, the Finance Bureau of Kunming issued a document requesting that local areas with high incidence of "Three Guarantees" should not spend other items except emergency expenses before the implementation of "Three Guarantees" expenditure, adjust the budget at the beginning of the year according to procedures, reduce non-rigid expenditures, and give priority to ensuring that rigid expenditures such as "Three Guarantees" are fully in place.
Take multiple measures to alleviate the contradiction between fiscal revenue and expenditure
In fact, since 20 14, the fiscal revenue has entered a medium-low growth, and the efforts of local governments to reduce non-emergency and non-rigid expenditures have increased year by year, and the corresponding financial space has become smaller and smaller. To alleviate the contradiction between fiscal revenue and expenditure, we need to take a number of measures at the same time, the first of which is to stabilize the basic economic disk, and economic growth can ensure income growth.
Recently, the State Council has introduced a package of measures to stabilize the economy, and various localities have also introduced corresponding supporting measures. With the landing, the economy began to bottom out since May, laying the foundation for the growth of local fiscal revenue.
"To alleviate the contradiction between fiscal revenue and expenditure, we can solve it by revitalizing existing funds, increasing the profits of local state-owned assets, and transferring funds from the central government to local governments." Luo Zhiheng said.
Revitalizing the existing funds has become an important measure to solve the contradiction between local fiscal revenue and expenditure and expand effective investment.
Recently, the State Council issued a clear document to increase the efforts to revitalize the existing funds, recover the funds that do not need to be used according to the original purpose from the carried-over funds less than two years, and use them as a whole in areas that need urgent support for economic and social development. In addition, the General Office of the State Council issued the Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment, which aims to expand effective investment by revitalizing existing assets of infrastructure.
In addition, some experts suggested that in the second half of the year, according to the situation of economic and social development, we should consider increasing the fiscal deficit or issuing special treasury bonds to ease the contradiction between local fiscal revenue and expenditure.
"We can consider implementing the policy of issuing special government bonds in 2020, and give some funds to local governments to make up for the phased fiscal revenue and expenditure gap caused by the epidemic and tax refund, tax reduction and fee reduction." Wang Zhenyu said.
Luo Zhiheng believes that there may be three options for incremental fiscal policy in the next step. First, issue special government bonds; The second is to improve deficit ratio; The third is to issue the special debt quota in 2023 in advance and use it in the fourth quarter.
Many places have been impacted by many factors, and the fiscal revenue has declined. Recently, the fiscal revenues of the first five months have been made public in various places. Among the 22 provinces that have published relevant data, more than 10 provinces have experienced different degrees of decline in general public budget revenue. Among them, Jilin, Yunnan, Tianjin and other places have a large decline. The incomes of Shanxi and Inner Mongolia have increased substantially.
Large-scale VAT refund is one of the main reasons for the decrease of local fiscal revenue. In response to the downward pressure on the economy, the State Council requested that the implementation of the VAT refund policy be accelerated to ensure the "full implementation" of the tax refund policy in the first half of the year. According to the data of the Ministry of Finance, the tax rebate from April to May reached 1.34 trillion yuan.
According to the arrangement of the State Council, this year's tax rebate is about 2.5 trillion yuan, of which the value-added tax rebate is/kloc-0.5 trillion yuan. At the end of May, the State Council issued a package of policies to stabilize the economy, clearly expanding the scope of VAT refund, increasing by 1.40 billion yuan, and the annual tax refund scale was about 1.64 trillion yuan. Since the implementation of the tax rebate policy for two months, the scale of tax rebate has reached nearly 82% of the annual target.
Generally speaking, the fiscal revenue after deducting the tax rebate factor can more truly reflect the economic operation. Take Jilin as an example. From June to May, 5438, the general budget revenue of Jilin Province was 30.78 billion yuan, a natural decrease of 44.2%. Affected by the epidemic, tax revenues such as value-added tax and enterprise income tax declined. The Jilin Provincial Department of Finance said that although the impact of the epidemic on the production and operation of market players continued, the impact gradually weakened.
Shanxi and Inner Mongolia, as major energy provinces, performed brilliantly. Take Inner Mongolia as an example. From June 5438 to May, the general budget revenue of the whole region was 135 billion yuan, an increase of 38.45 billion yuan year-on-year, an increase of 50.6% and a natural increase of 39.8% after deducting the tax rebate factor.
Ordos, Inner Mongolia, as a typical resource-based region, is rich in energy, chemical industry and building materials resources. According to the data of the National Energy Administration, the national coal consumption will increase by 0.6% in 2020, accounting for 56.8% of the total energy consumption, of which Inner Mongolia coal accounts for 82% and Ordos accounts for 87%.
The data shows that the energy industry in Ordos increased from 1 to May 10.2, accounting for 86.4% of the city's industrial added value, with a contribution rate of 88.9%, driving the city's industrial added value to increase by 7.6 percentage points. Among them, coal industry, oil and gas exploration industry, electric power, thermal production and supply industry have all increased to varying degrees.
According to media reports, due to the tax rebate of 2.64 trillion yuan and the epidemic situation, the fiscal revenue in many places has rarely declined this year, while the rigid expenditure has increased instead of decreasing, and the contradiction between revenue and expenditure has increased, exceeding the expectations of some places at the beginning of the year.
Recently, various provinces and cities have intensively adjusted their budgets, which is a routine move, mainly to increase borrowing debts according to law. However, Chongqing and other places have made some new moves. In order to cope with the revenue and expenditure gap caused by tax refund and tax reduction, measures such as optimizing the fiscal expenditure structure and compressing the general government expenditure have been taken to make up the income gap and support people's livelihood.
There has been a rare decline in fiscal revenue in many places.
This year, the fiscal revenue of many places has rarely declined. However, in the case of constant rigid expenditure, the contradiction between revenue and expenditure in many places has increased. To this end, in the near future, many places have intensively adjusted their budgets. In addition, some places consider reducing general expenditures. Next, let's take a closer look.
Affected by tax rebate, tax reduction and fee reduction, epidemic raging, Russia and Ukraine, and the land market downturn, local fiscal revenue generally declined. To this end, the central government has increased the transfer payment to local governments this year, with a scale close to 10 trillion, a record high.
At the same time, recently, various localities have intensively adjusted their budgets, mainly to increase borrowing debts according to law. In addition, some places have taken measures such as optimizing the structure of fiscal expenditure and compressing general government expenditure to alleviate the contradiction between revenue and expenditure.
Many city financial people told reporters that in the context of the current intensified contradiction between fiscal revenue and expenditure, they are already considering reducing budgetary revenue and expenditure, including reducing general government expenditure and some project expenditures, and using funds for epidemic prevention and control, people's livelihood and other fields.