Fiscal policy can play an important role in promoting residents' income growth by optimizing tax adjustments, improving transfer payments, promoting employment and entrepreneurship, and improving the social security system. Highlighting key points, implementing policies accurately, and focusing on improving capital efficiency will bring a tangible sense of gain to the people.
Recently, the General Office of the CPC Central Committee and the State Council issued the "Special Action Plan to Boost Consumption", which proposed "improving support policies", while deploying specific measures such as the promotion of urban and rural residents' income growth and the support for consumption capacity guarantee, and emphasized the need to give full play to the guiding and driving role of fiscal policies.
French policy to boost consumption is directly to take out "real money" and make comprehensive efforts from both supply and demand to guide and drive. The Central Economic Work Conference and this year's "Government Work Report" have made arrangements for the implementation of more proactive fiscal policies, and clearly stated that it is necessary to optimize the fiscal expenditure structure and pay more attention to benefiting people's livelihood, promoting consumption, and increasing momentum.
Finance policies can enhance residents' willingness to consume and expand consumption demand. Recently, the "national subsidy" has continued to ignite residents' enthusiasm for consumption in physical stores and e-commerce platforms in various places. Last year, the central government specially allocated 150 billion yuan of ultra-long-term special treasury bonds to support the exchange of old products for new products, and drove sales of automobiles, home appliances and other related products to exceed 1.3 trillion yuan, with a very obvious driving effect. The scale of old-for-new funds for consumer goods arranged this year doubled compared with last year, and increased efforts to expand the scope, including digital products such as mobile phones in the subsidy scope. By using policy tools such as fiscal subsidies and loan interest subsidies, consumption motivation has been enhanced, and fiscal funds have played a role in "making a big move" and effectively drive the consumer market to recover or even be boom.
Fiscal policy can improve residents' consumption capacity and steadily improve expectations. my country's consumption growth space is very broad, but some residents' income levels are limited, and their confidence and expectations are weak, which has become an important factor affecting consumption. The first deployment of the "Special Action Plan to Boost Consumption" is the "Enhancing Urban and Rural Residents' Income Increase", which shows the importance of increasing residents' income levels in boosting consumption. Fiscal policy can play an important role in promoting residents' income growth by optimizing tax adjustments, improving transfer payments, promoting employment and entrepreneurship, and improving the social security system. This year, my country will appropriately increase the basic pension for retirees, the basic pension for urban and rural residents, and the financial subsidy standards for urban and rural residents' medical insurance. In addition, the central government has allocated employment subsidy funds, implemented employment and entrepreneurship support policies, actively supported enterprises to stabilize employment, and continued to implement the policy of phased reduction of unemployment and work-related injury insurance premiums. These powerful measures to be implemented this year will not only improve people's livelihood, but also improve expectations and endogenous motivation, and enhance people's confidence in consumption.
What the people hope for and what the government wants. How can the "gold content" of fiscal policy measures bring a real sense of gain to the people? On the one hand, we must highlight key points and implement policies accurately. There are many consumer demands, and fiscal funds are identified to focus on their efforts, optimize the expenditure structure, and avoid "spraying pepper". Consumption of services such as health, elderly care, and childcare, as well as new consumption hotspots such as digital, intelligence, culture, tourism, and sports, are consumption that is close to the needs of the people and should become key support areas, which can not only effectively stimulate consumption vitality, but also better meet the people's needs for a better life.
On the other hand, we must focus on improving capital efficiency. This year's fiscal policy will place "support to expand domestic demand" in an important position, and fiscal funds will strongly support and boost consumption. To give full play to the effectiveness of funds, supervision should be strengthened to prevent illegal and irregular behaviors such as squeezing, misappropriation, idle arbitrage, ensure that special funds are used for special purposes, and use funds to truly enhance residents' willingness and ability to consume. Accelerate the progress of capital expenditure, optimize the subsidy declaration process, and ensure that funds are fully utilized and dividends are leveraged.
To boost consumption requires the coordinated linkage of macro policies in all aspects. For example, in cooperation with fiscal and financial policies, interest subsidies will be provided for key areas for personal consumption loans and loans to business entities in related fields such as catering and accommodation, housekeeping, etc., guiding and driving credit resources to support the steady development of the consumer market. Policies such as finance, taxation, finance, industry, and investment are put into the same direction and form a synergy to enhance accuracy and coordination, which can better boost consumption and give full play to the positive role of consumption in smoothing the circulation of the national economy and driving economic growth. (Author: Zeng Jinhua)
