Question 2: What does the national debt stabilization fund mean?
Bond stabilization fund/bond stabilization fund/bond market stabilization fund is gradually evolved from sinking fund.
Sinking fund was first proposed by Wapol, an Englishman, in the 8th century. He advocated that the government should set up a special fund to repay debts. 17 16, in Robert? Under the organization of Sir walpole, Britain began to set up a debt reduction fund.
1786 British Prime Minister William? Peter in Richard's mouth. About the price? Does the country want to borrow money with simple interest and borrow money with compound interest? The proposal further revised the debt reduction fund system. Price believes that the theoretical basis for the establishment of debt reduction fund is calculated according to the cumulative calculation method of compound interest. He believes that if 1% of the existing debt is taken as the starting point of the fund and multiplied by compound interest, the 3% national debt can be paid off in 47 years; 4% of the national debt can be paid off within 42 years; 5% of the national debt can be paid off within 37 years. In this way, there are two sources of financial resources that can be used to buy and sell government bonds: one is the fixed funds proposed by the government every year; Second, the interest on bonds that have been bought and sold has increased and accumulated. At that time, the main practice in Britain was that the government raised a certain amount from the national treasury revenue every year as a debt reduction fund to repay the national debt. The debt relief fund is managed by a special institution. According to the plan, the interest generated by this fund will be used to buy government bonds at current prices. For government bonds that have been purchased by the state treasury, a fixed amount of interest is still paid, and its profits and balance are included in the fund. We will continue to buy government bonds next year until all the government bonds are bought and sold out. The purpose of setting up a debt reduction fund is to balance the debt expenditure of each year, so that debt repayment can be planned and rhythmic, and it can play a forward-looking role and balance the debt expenditure of each year. However, the actual implementation in Britain has not produced the expected results. The main reason is that most of the debt relief funds are abused by the government with financial difficulties, which makes the debt relief funds exist in name only. Later, Prussia also implemented the debt reduction fund system in 1820.
Japan has set up a debt reduction fund since 1906. At that time, the Japanese government formulated the special accounting law for the national debt processing fund and established the national debt processing fund. There are three sources of funds for the national debt processing fund: one is to convert a certain proportion of the national debt balance into a fixed amount; The other is to transfer part of the surplus funds to the balance of general accounting subjects; There is also a budget transfer of the amount needed to repay the national debt.
The United States has also set up a debt relief fund. 19 19, the United States passed the war loan law, and in order to systematically adjust the national debt accumulated in World War I, it set the annual expenditure authority for repaying the debt. With the implementation of Roosevelt's New Deal, the expenditure as the object of debt repayment has increased, and the amount of these permanent expenditure authority is determined by law. Specifically, there are three ways to allocate it to the debt reduction fund: (1) Expenditure according to the war loan law of19, and the amount of expenditure is equivalent to the balance of the national debt issued in July 1920 minus 2.5% of the foreign government debt held by the government on that day. For all kinds of government bonds purchased or repaid by the debt reduction fund, the expenditure limit is equivalent to the interest payable in the current year; (2) According to 1932 Emergency Relief Construction Law, the expenditure is equivalent to 2.5% of the budgeted expenditure of this law. Of course, whether to use the expenditure authority to actually repay the debt mainly depends on the attitude of the government. By the 1920s, its authority was almost fully utilized, which made the liquidation of wartime national debt go smoothly. However, due to the implementation of Roosevelt's New Deal in the 1930s, the subsequent World War II resulted in an increase in the balance of national debt, which made it difficult to repay the national debt on a regular basis. In this case, the government turned to a new policy of borrowing new debts to repay old debts. In this way, the purpose of the debt relief fund gradually disappeared.
To sum up, with the increasing scale of national debt issuance in various countries, when the peak of national debt repayment comes, the debt reduction fund originally aimed at debt repayment has been unable to cope with the huge debt repayment expenditure, which makes the government have to adopt the way of replacing the old with the new, that is, its debt repayment function has been lost, but its function of regulating the bond market has been more and more fully exerted because of its stability. Therefore, the stabilization fund has gradually replaced the debt reduction fund.
So far, the purpose and function of the national debt stabilization fund are completely different from those of the previous debt reduction fund. The debt reduction fund was originally set up to balance the debt expenditure until the national debt was completely eliminated. Nowadays, the stabilization fund is established by the government to protect the reputation of high-value national debt, enhance the government's solvency, maintain the expectations of national debt holders, encourage investors to subscribe for national debt, and maintain the sustained and stable development of the national debt market. Now, the national debt fund in the British budget system actually plays the role of a stable fund. Did you call before 1966? Offline budget? What is transformed is actually the second budget of the country. The main sources of national debt fund are: regular budget allocation, profits of the Bank of England, interest and repayment of loans to state-owned companies and local governments, etc. Its funds are mainly used to buy and sell government bonds to maintain the stability of the bond market, make up for the conventional budget deficit, and lend to state-owned companies and local governments.
At present, there are mainly foreign exchange stabilization fund, national debt stabilization fund, grain stabilization fund and stock market stabilization fund.
Japan's current national debt stabilization fund is also evolved from the debt reduction fund. 1965 Japan issued so-called income subsidy bonds, and after 1966, it successively issued so-called construction bonds. Therefore, it is urgent for the government to formulate a special "Accounting Law for Repayment of National Debt Disposal Fund" (1promulgated and implemented in May 1968,1passed in June 1967), thus forming the current national debt stabilization fund. Under the current system, the stabilization fund mainly comes from three aspects:
(1) When preparing the budget every year, according to the total accumulated national debt at the beginning of the year, it will be transferred from the general accounting budget to the fund at a fixed ratio of 1.6% (roughly equivalent to 1/60);
(2) The total accounting budget should also allocate corresponding funds to the stabilization fund according to the needs of repaying debts and regulating the bond market in each year;
(3) If there is a balance in the general accounting budget, more than half of it should be transferred to the stabilization fund.
The above three items constitute the main source of Japan's stability fund. For example, in the 1980 national debt expense budget, the national debt repayment expense is 823.2 billion yen, of which 36.5 billion yen, accounting for 4.4% of the total repayment expense, and the budget funds are transferred to 1087 billion yen, accounting for 13.2% of the total repayment expense. Because the operation of Japan's stabilization fund not only seeks the balance of financial burden, but also can be used flexibly according to the fund's capital situation and the bond market situation, thus maintaining the stability of the national debt market. Therefore, in comparison, Japan's stabilization fund is better than that of European and American countries.
The role of stabilization fund in regulating the national debt market
The main functions of the stabilization fund in regulating the national debt market are as follows: when the national debt market is depressed for a long time, the government wants to revitalize the bond market, or when there is a large number of selling in the national debt transaction, which harms the interests of bondholders and poses a threat to the issuance market, the government can start the stabilization fund and buy a large number of second-hand bonds to stimulate the transaction price to rise and reduce the debt service expenditure; And when the national debt market is overheated and speculation is prevalent, the government wants to give the bond market? A fever? Or when the demand in the bond market is too strong, the government can wait for an opportunity to sell some government bonds to keep the yield and transaction price of government bonds within a reasonable range. This kind? Reservoir? The regulation mechanism of "advance and retreat" is conducive to the stable and healthy development of the national debt market.
What needs to be pointed out in particular here is that some scholars believe that when the stabilization fund regulates the bond market, it often buys a lot at a low price and throws it at a high price, which has nothing to do with market investors. Objection? The suspicion of profiting from it is detrimental to the interests of bondholders. When Britain pays its consolidated national debt or unified national debt, it often chooses to buy in large quantities when the market price of national debt is lower than the face value until its debt disappears. Japan also uses buying and selling to repay national debt, and restricts the use of national debt when the market price is lower than the face value. This does not deny that when the market price of national debt exceeds its face value, sometimes this method cannot be used. On the surface, the government seems to hinder the interests of bondholders when the price of national debt is low, but it is not. Because the national debt in the trading market is carried out in accordance with market rules, that is to say, only when voluntary sellers sell national debt can the government stabilize the funds to buy it, and the government is only one of the buyers in the market. The holder of the national debt can also transfer the national debt to other buyers at the same price. Only through voluntary and equal competition between buyers and buyers and sellers can the transaction be realized. The government's purchase of government bonds in the bond market will stop the decline of government bond prices and promote the recovery of government bond prices, which is still beneficial to the holders of government bonds.
The practice of the development of the national debt market in western developed countries, especially Japan, proves that the national debt stabilization fund is the most effective and direct means for the government to implement macro-control of the national debt market through economic channels. China's national debt market has a high starting point and rapid development. However, it is worrying that this mechanism has not been established in China so far, which leads to the market downturn and high yield of second-hand bonds in the second half of 1988 to 1989 and 1992 to 1993, and the market overheating and high transaction price in the second half of 1994. Therefore, the establishment of stabilization fund is imminent.
The Influence of National Debt Issuance Fund on China Bond Market
The national debt sinking fund is different from the stabilization fund in the purpose of use. The former mainly aims at balancing debt repayment, while the latter mainly aims at stabilizing the national debt market. Under the condition of socialist market economy, it is not economical to establish a sinking fund solely for the purpose of debt repayment, because under the condition of modern market economy, the purpose of government issuing treasury bonds is not only to make up the fiscal deficit, but also to achieve macro-control purposes. Moreover, maintaining the stability of the national debt market is also an important responsibility of the government. Therefore, the national debt stabilization fund established in China should have the dual functions of stabilizing the bond market and repaying the national debt, and there is no need to set up a stabilization fund and a sinking fund separately. Our country had the idea of setting up a sinking fund in 1987, when the Ministry of Finance decided to keep 500 million yuan in the debt income of that year as a sinking fund. At that time, I planned to be a debt-based fund, but it was not realized for various reasons. 199 1 The actual issuance of government bonds exceeded the planned issuance by 9.93 billion yuan. The Ministry of Finance has decided that the part released beyond the plan will not enter the budget for the time being, and will not be reused until the debt repayment peak of 1992. In this way, the idea of establishing a sinking fund has become a reality. At present and in the future, the work to be done is to ensure that the funds of the year are not misappropriated, otherwise the sinking fund will exist in name only; Second, according to the economic development and budget situation, continuously expand the sources of debt repayment funds; Third, the government should activate the fund to make it play the role of stabilizing prices and maintaining the stability of the national debt market, so that the fund will gradually become a stabilization fund.
The national debt stabilization fund is still a brand-new regulatory tool for us. Judging from the operation of the stabilization fund, it will definitely have a significant impact on China's national debt issuance market and trading market:
(1) The stabilization fund is conducive to the expansion of the issuance scale of national debt. The stabilization fund can act as a bridge and link between the government, securities companies and national debt investors. Due to the regulation of the stabilization fund on the bond market, the investment income of national debt has the characteristics of safety and stability, which makes investors have no worries and enthusiasm for buying;
(2) The stabilization fund is conducive to improving the efficiency of the national debt issuance market. The development goal of the national debt issuance market is to establish a high-efficiency and low-cost national debt issuance market. The establishment of stabilization fund is not only conducive to speeding up the issuance of national debt, but also can shorten the underwriting period, save the issuance cost and reduce the issuance cost.
(3) the stabilization fund is conducive to enhancing the liquidity of the spot trading market of government bonds, forming a trading market with the OTC market as the main body, and promoting the development of spot trading of government bonds;
(4) The stabilization fund is conducive to controlling excessive speculation and market manipulation in treasury bond futures trading and giving full play to the market function of treasury bond repurchase trading, thus contributing to the formation of treasury bond derivatives trading market.