We should appropriately enhance the intensity of our proactive fiscal policy and improve its quality and effectiveness.
We should take into account both development needs and fiscal sustainability, leverage fiscal policy space, and improve the policy toolkit. We have set the deficit-to-GDP ratio for this year at 3 percent and the government deficit at 4.06 trillion yuan, an increase of 180 billion yuan over the 2023 budget figure. It is projected that fiscal revenue will continue to grow in 2024 and we will also have funds transferred from other sources; on this basis, general public expenditures in the government budget are projected to reach 28.5 trillion yuan, an increase of 1.1 trillion yuan over last year. This year, 3.9 trillion yuan of special-purpose bonds for local governments will be issued, an increase of 100 billion yuan over last year.
To systematically address funding shortages facing some major projects for building a great country and advancing national rejuvenation, it is proposed that, starting this year and over each of the next several years, ultra-long special treasury bonds be issued. These bonds will be used to implement major national strategies and build up security capacity in key areas. One trillion yuan of such bonds will be issued in 2024.
Additional government investment is needed in many sectors this year. This means that we should further improve the structure of government spending, ensure sufficient funding for major national strategic tasks and efforts to meet the people’s basic living needs, and strictly control general expenditures.
The central government will increase transfer payments to local governments for ensuring equal access to basic public services, which will appropriately tilt toward regions facing economic difficulty. Governments at the provincial level, meanwhile, should allocate more fiscal resources to lower-level governments to see that, at the primary level, basic living needs are met, salaries are paid, and governments function smoothly.
We should fully implement structural tax and fee reduction policies, with priority given to supporting scientific and technological innovation and the development of the manufacturing sector.
We must tighten up financial and economic discipline and intensify oversight on accounting. Prestige and vanity projects and wasteful and excessive spending will be strictly prohibited. Governments at every level must get used to keeping their belts tightened, run on lean budgets, and ensure that fiscal funds are used
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