What does 1 trillion special national debt mean? Special national debt refers to the national debt issued in a specific period and used for a specific purpose to form a specific asset. It does not need to be included in the general public budget, but in the budget management of government funds. The principle of government fund budget is "fixed expenditure based on income", so there must be favorable requirements.
The special anti-epidemic national debt is not a general national debt, but a special national debt issued by the central government in response to the impact of the COVID-19 epidemic, which is not included in the fiscal deficit. This is a special measure in a special period. Special epidemic prevention treasury bonds are mainly used for local public health and other infrastructure construction and epidemic prevention-related expenditures.
Wen Bin, chief researcher of China Minsheng Bank, said that special treasury bonds serve the needs of specific policies and support specific projects, and have the advantages of specific purposes, large scale, long term and flexible policies.
It is understood that special bonds have been issued twice in China's history, in 1998 and 2007 respectively, and some special bonds issued in 2007 were renewed after their expiration. The purpose of the two special treasury bonds is to supplement the capital of the four major banks and inject capital into CIC.
Specifically, in August of 1998, the Ministry of Finance announced the issuance of 270 billion yuan of special treasury bonds with a term of 30 years, which will be issued to the four major state-owned banks of industry, agriculture, China and China Construction, so as to supplement the capital of the four major banks, resolve non-performing assets and improve the capital adequacy ratio. According to public information, in 1998, the proportion of non-performing assets of the four major state-owned banks reached 20%. In order to dispose of non-performing assets, the Ministry of Finance has also set up four asset management companies, which are connected with four banks respectively.
The second issue of special government bonds was in 2007, when the background was that the continuous increase of foreign exchange income led to the increase of base currency and the reform of foreign exchange reserve management. * * * Eight special treasury bonds were issued, with the scale of 1.55 trillion yuan and the maturities of 10 and 15 years respectively, of which 0.2 trillion yuan was issued to the public to buy cash from the central bank and shares of Huijin Company and inject capital to establish CIC.