Liu Kun, Minister of Finance of China, said that the economy is expected to recover overall this year, and China's local fiscal situation is expected to gradually improve.However, he also mentioned that some local debt risks are high, and the pressure on interest payment is high. It has urged relevant places to solve the risk of government debt and keep the bottom line that does not have systemic risks.
According to the live broadcast of the Chinese website, the State Council News Office held a series of theme press conferences on Wednesday (March 1) of the "Authoritative Department Talk to the Start" to introduce financial implementation and implementation.
When answering some factors such as the decreased land transfer income and anti -epidemic expenditure and other factors facing the problem of fiscal balance, Liu Kun first notified the situation of last year's local fiscal revenue and expenditure.
He said that last year, the local public budget revenue was 1.088 trillion yuan (RMB, the same below, about S $ 2.12 trillion), and increased by 5.9%after deducting the retained tax refund factor.The general public budget expenditure was 2.2.5 trillion yuan, an increase of 6.4%over the previous year, and local fiscal operation was generally stable.
Liu Kun pointed out that with the optimization and adjustment of the epidemic prevention and control policy, and the continuous efforts of a policy of stabilizing the economy and the continuation measures, this year's economy is expected to recover, and local fiscal conditions are expected to gradually improve.
On the issue of land transfer income, Liu Kun explained that from the perspective of the budget of local government funds in the country, partially transferred the income to the general public budget.About 15%, although a decline in last year, the impact on local general public budget expenditures can be controlled.
He pointed out that because the specific data is yet to be determined, if the land transfer income was reduced by about 2 trillion yuan in accordance with last year's land transfer income, it will affect the local public budget financial resources of about 300 billion yuan.He specifically stated that land transfer revenue is gross income. While revenue decreases, it will also reduce cost expenses such as demolition compensation accordingly. The income and expenditure are linked, so the impact of the decline in land transfer income is not so great.
Regarding debt issues, Liu Kun said that the debt ratio of China's legal debt last year was about 50%. This indicator was relatively low in the world and the economy.
He admits that the debt of Chinese local governments is mainly uniform distribution, high risk of debt in some localities, and high pressure on interest payment.The risk of debt, firmly holding the bottom line of no systemic risk, and emphasized, "we can keep this bottom line."
