This year's fiscal deficit ratio is planned to be arranged at about 4%.

This year's government work report proposes to implement more proactive fiscal policies, and this year's deficit ratio is planned to be arranged at about 4%. In this regard, experts said that the increase in the deficit ratio will help increase expenditure, expand effective demand, and boost market confidence.

The government work report proposes that this year, various financial funds such as income and bonds should be coordinated to ensure that fiscal policies continue to be put in place and become more powerful. Experts believe that this is a continuation of the regulatory ideas of the Political Bureau meeting of the Central Committee on September 26 last year, and the superposition of fiscal stock policies and incremental policies can play a more leverage role.

This year's deficit ratio is planned to be arranged at about 4% for the first time, an increase of 1 percentage point over the previous year, and the deficit scale is 5.66 trillion yuan, an increase of 1.6 trillion yuan over the previous year. The scale of general public budget expenditure was 29.7 trillion yuan, an increase of 1.2 trillion yuan over the previous year. How should it be understood?

Director of the Chinese Academy of Fiscal Sciences Yang Zhiyong: The fiscal deficit ratio is the proportion of fiscal deficit in GDP. It has now increased from 3% and below in the past to about 4%, which means there is a larger fiscal deficit and more financial resources at the disposal of the government. By increasing the fiscal deficit ratio, more fiscal funds can be raised to ensure people's livelihood and promote the healthy development of the economy and society.

Experts said that from the perspective of policy space, there are conditions for increasing the fiscal deficit ratio. For example, my country's government debt ratio is around 70%, which is lower than the level of major economies. In particular, the central government's debt ratio is relatively low and there is relatively large room for debt borrowing.

Chief economist of Guangdong Securities and Executive Director of the China Taxation Society Luo Zhiheng: The deficit ratio has increased, reflects a more proactive fiscal policy, and also reflects the proactive action and active responsibility of fiscal policy. It is conducive to the expansion of fiscal expenditure and to better play the role and effect of countercyclical adjustment, and to hedge external uncertainties with the expansion of domestic demand.

Increase the issuance of special bonds and other issuances

Finance policies are more active

Experts said that the strength of the deficit ratio around 4% indicates that the fiscal policy is more active.

In fact, in the fiscal policy toolbox, in addition to the deficit tool, this time, special bonds, ultra-long-term special treasury bonds and other tools were added, especially when "special treasury bonds" were mentioned, there will be a total of 11.86 trillion yuan in new government debt this year. Experts said that this reflects the central government's firm determination to promote economic recovery and improvement.

This year, the total amount of new government debt was 11.86 trillion yuan, an increase of 2.9 trillion yuan over the previous year, and the intensity of fiscal expenditure increased significantly. According to the government work report, it is planned to issue 1.3 trillion yuan of ultra-long-term special treasury bonds this year, an increase of 300 billion yuan over the previous year. It plans to issue 500 billion yuan of special treasury bonds to support large state-owned commercial banks to supplement capital. Experts said that this not only helps reduce the risks of commercial banks, but also improves the ability of commercial banks to implement reserve requirement cuts and interest rates to further support the real economy. At the same time, it is planned to arrange 4.4 trillion yuan of special bonds for local governments, an increase of 500 billion yuan over the previous year.

Director of the Chinese Academy of Fiscal Sciences Yang Zhiyong: The issuance of special bonds this year and some expenditure arrangements are continued last year's incremental fiscal policy. How to spend local bonds, especially special bonds, is also very particular. In the early days, local special bonds were about projects. Now based on actual conditions, for local governments, they may need more comprehensive local financial resources, so that local governments can better coordinate the use of special bond funds.

At the same time, experts said that the use of special bonds has also been optimized. According to the report, these special bond funds will be focused on investment and construction, land acquisition and acquisition of existing commercial housing, and digesting the accounts owed by local governments by enterprises. Experts say that these uses can play a role in filling in shortcomings and preventing risks.

Chief economist of Guangdong Securities and Executive Director of the China Taxation Society Luo Zhiheng: This year's budget arrangement can play an important role in promoting the prevention and resolution of economic and social risks, including real estate and financial risks. For example, our special bonds are used to collect and store idle existing land and revitalize idle existing land and purchase commercial housing as affordable housing. This is very conducive to promoting the stop of the decline and stability of the real estate market.