Li Keqiang, Premier of the State Council of the People’s Republic of China presided over the the State Council executive meeting on March 31, and decided to issue a batch of local government special debt quotas in advance to promote the expansion of effective investment; Deploy and strengthen financial support for small and medium-sized enterprises; It is required to increase the relevant subsidy policies for difficult groups.
The meeting pointed out that it is very important to strengthen the protection of low-income groups, especially those in difficulty. The meeting demanded that from March to June, the price temporary subsidy standard of the linkage mechanism between social assistance and security standards and price increases should be doubled, and orphans and eligible insured unemployed people should be included in the policy scope.
The reporter of national business daily noted that according to the above linkage mechanism, if the food price in the consumer price index rises by 6% year-on-year, temporary price subsidies can be started.
And then issue special debts of a certain scale in advance.
The meeting pointed out that it is necessary to further increase the scale of local government special bonds and expand effective investment to make up for shortcomings. On the basis that a part of this year’s special debt limit has been issued in the early stage, we should pay close attention to issuing a certain scale of local government special debt in advance according to procedures, and in accordance with the principle of "funds follow projects", give preferential treatment to areas with many key projects, low risk levels and large effective investment, and speed up the construction of major projects and major livelihood projects. All localities should pay close attention to the issuance of special bonds issued in advance and strive to complete the issuance in the second quarter.
In March this year, the Ministry of Finance announced that as of March 20, 1,407.9 billion yuan of new local government bonds had been issued across the country, accounting for 76% of the quota issued in advance; Among them, 384.6 billion yuan of general bonds were issued, accounting for 69% of the quota issued in advance, and 1,023.3 billion yuan of special bonds were issued, accounting for 79% of the quota issued in advance.
According to the Ministry of Finance, authorized by the National People’s Congress Standing Committee (NPCSC) and decided by the State Council, the new local government debt limit of 1,848 billion yuan in 2020 has been issued ahead of schedule, including 558 billion yuan for general bonds and 1,290 billion yuan for special bonds.
As of March 20, the issuance scale of new local government bonds nationwide increased by 55% year-on-year. Nine regions including Beijing, Tianjin, Liaoning, Ningbo, Fujian, Jiangxi, Guangdong, Sichuan and Yunnan have all completed the issuance of new local government debt limits in advance.
Meanwhile, on March 30th this year, the 17th meeting of the Standing Committee of the 13th National People’s Congress of Henan Province heard a report on the provincial budget adjustment plan (draft) in 2020. The report shows that in 2020, the Ministry of Finance issued 26.9 billion yuan of new general bonds and 51.9 billion yuan of the first batch of new special bonds in Henan Province in advance, which were included in the budget at the beginning of the year and reviewed and approved by the Third Session of the 13th Provincial People’s Congress. After the provincial people’s congress, the Ministry of Finance approved and issued the second batch of new special bonds of 6.8 billion yuan in 2020.
Raise the price of temporary subsidies.
The meeting pointed out that it is very important to increase protection for low-income groups, especially those in difficulty. The meeting decided that, first, from March to June, the monthly price temporary subsidy standard of the linkage mechanism linking social assistance and security standards with price increases will be doubled, and orphans, children who are actually left unattended and eligible insured unemployed people will be included in the policy scope. The increased subsidy funds are subsidized by the central government in proportion and charged to the unemployment insurance fund. The above policies cover more than 67 million people.
Second, the people in difficulty affected by the epidemic will be included in the scope of policy guarantee and employment assistance such as subsistence allowances, support for extremely poor people and temporary assistance. Ensure the payment of unemployment insurance benefits for urban unemployed people and temporary living allowances for migrant workers. Pay close attention to studying the policy of raising the standard and expanding the scope of unemployment security.
The reporter of national business daily noted that in August 2016, the National Development and Reform Commission and other five departments issued the Notice on Further Improving the Linkage Mechanism between Social Assistance and Security Standards and Price Rising, which clearly stated that the linkage mechanism would be started if any of the following conditions were met: (1) The consumer price index (CPI) rose by 3.5% year-on-year. Where SCPI is adopted, it can continue to be used, and the critical value can be set reasonably with reference to the 3.5% year-on-year increase of CPI. (2) The price of food in CPI rose by 6% year-on-year.
The above notice requires that all localities can reduce the starting conditions in light of the actual situation, but in principle, the starting conditions shall not be improved.
In fact, in 2019, there were many temporary price subsidies. In April and May of 2019, the food price indicators in Chongqing CPI all reached the starting conditions of the linkage mechanism. With the consent of the municipal government, the Municipal Development and Reform Commission and the relevant departments of civil affairs issued a notice, according to 18 yuan per person in the city and 15 yuan per person in the countryside in April; In May, the standard of 24 yuan per person in cities and 18 yuan per person in rural areas provided price subsidies to the needy people in urban and rural areas.
In September 2019, in response to the rising pork prices, Xuzhou launched a linkage mechanism linking social assistance and security standards with rising prices, and distributed a "one-time pork price subsidy during Mid-Autumn Festival and National Day" to urban poor groups, each with 100 yuan. (Reporter Li Biao)
