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Luo Jianguo, director of the Anhui Provincial Department of Finance: facing the financial and economic situation

Author: Luo Jianguo Source: China Financial and Economic News Published: 2019-01-29

Luo Jianguo

In 2019, economic and social development is still in a period of important strategic opportunities, but the environment it faces is more complex, with greater uncertainty, more risks and challenges, and it is becoming more difficult to maintain a stable financial and economic operation. In this regard, financial departments at all levels should recognize the situation, face difficulties, strengthen confidence, seize opportunities, be good at turning crisis into opportunity, turn crisis into safety, turn difficulty into condition, and challenge into motive force, further establish dialectical thinking and bottom-line thinking, and maintain strategy. Constant force and work, strengthen ideological and action consciousness, make full ideological preparation and work preparation, and firmly grasp the initiative of financial work.

First, new changes in policy orientation . The Central Economic Work Conference clearly stated that macro policies need to strengthen counter-cyclical adjustments, active fiscal policies need to work harder and more effectively, prudent monetary policies need to be moderately tight, structural policies need to strengthen institutional mechanisms, and social policies need to be more secure. Focus on the main contradictions, strengthen the coordination and coordination of policies, and grasp the pace and intensity of policy implementation. In this regard, the financial department should take a quasi-policy orientation, thoroughly understand the essence of the policy, and do a good job of implementing the policy. On the one hand, we must persist in taking the supply-side structural reform as the main line, unswervingly implement the eight-character policy of “consolidation, enhancement, promotion, and unblocking”, resolutely implement a proactive fiscal policy, do a good job of reducing taxes and fees, and optimize the structure of fiscal expenditures. Key tasks such as the issuance and use of local government debt support the consolidation of the achievements of "three eliminations, one reduction, and one supplement", strengthening the vitality of micro-subjects, and raising the level of the industrial chain. On the other hand, it is necessary to strengthen the coordination and interaction between fiscal policy and the "six stability" policy, ensure the effectiveness of macro-control, strengthen the close integration of fiscal policy with the market and social mechanisms, better play the role of the market and the government, and strengthen the provincial level. Fiscal policy and city-county related policies are linked up and down, and the overall effect of policies is enlarged to further promote high-quality economic development.

The second is the tight balance of revenue and expenditure operations . At present, the long-term positive economic situation has not changed, but domestic demand has slowed down, new kinetic energy for development is still insufficient, the real economy is facing significant increases in difficulties, the overall market expectations are generally weak, key core technologies are constrained by people, and regional development differentiation is continuing. Increased downward pressure will directly affect fiscal revenue. At the same time, with the "boosting" of active fiscal policies, on the one hand, it is necessary to implement larger-scale tax reductions and promote more obvious fee reductions, which will reduce current fiscal revenue, plus the tax reduction policy introduced in the middle of last year. The resulting tailspin factor will have a greater impact on fiscal revenue growth this year. On the other hand, it is necessary to continue to intensify expenditures, continue to strengthen the rigidity of expenditures in terms of ensuring development, reform, people's livelihood and social stability, and further increase the contradiction between fiscal revenue and expenditure. Finances at all levels will face more prominent pressures to break even. Therefore, it is necessary to recognize, seize, and make good use of the important strategic opportunities of current economic and social development, to strengthen development confidence, to seek practical measures, and to further fulfill the financial responsibility of expanding the economic "cake" and serving the five major developments. Strengthen the awareness of difficulties, actively respond to challenges, strengthen the overall arrangement of fiscal funds, and ensure fiscal sustainability.

The third is the urgency of improving quality and efficiency . Quality and efficiency are the lifeline of financial work. Under the current tight financial balance, it is even more urgent to work hard to improve quality and efficiency, and further improve the efficiency of the allocation and use of financial funds. There are still some problems that need to be resolved in financial management performance: the budget performance management system is not perfect, the budget and performance linkage mechanism is not perfect, the performance management responsibilities are not in place, budget constraints are not strong, and financial funds are still fragmented. There are also poor expenditure benefits and unrealistic policy effects. Some budget items still have a solid pattern of constant increase, and the phenomenon of "money and other projects" in budget implementation still exists; in some places, the potential of deepening potential, exerting comparative advantages, and building financial resources has been achieved. It's still not good; fiscal investment methods still need to be innovative, and the role of fiscal guidance in driving the market needs to be further enhanced, and so on. With regard to these issues, financial departments at all levels must use strict requirements and practical measures to focus on benchmarking, search for rectification, and solidly promote all-round, whole process, and full coverage of budget performance management, and effectively use limited financial resources on the "blade" .

Fourth, the severity of fiscal risk prevention and control . Fiscal stability is an important manifestation of economic stability. We must always pay attention to and effectively prevent and resolve fiscal risks. Beginning in 2019, Anhui Province has entered a peak period of debt repayment and interest. In addition, the province's land transfer income has grown weakly, and the increase in hidden debt has been strictly prohibited. The financing channels of city and county governments have been significantly narrowed, and the capital chain has been significantly closed. Tighter, the debt rates of some municipalities and counties at the municipal and county levels exceed the risk warning value, and there is greater pressure to prevent local government debt, especially hidden debt risk. In some places, the expenditure mechanism for optimizing the structure and guaranteeing the "three guarantees" has not yet been fully established. The phenomenon of surpassing financial resources in some areas of people's livelihood still exists. Excessive commitments on people's livelihood guarantees pose risks of fiscal unsustainability. Some local treasury funds fluctuate greatly from month to month, and the temporary temporary payment scale is relatively high. The risk of financial payment cannot be ignored. Fiscal risk is ubiquitous and always available. The financial sector is not only the lead manager of government debt risk, but also the related party of other financial risks and corporate risks. It is necessary to balance the relationship between stable growth and risk prevention. The bottom line of systemic fiscal and financial risks is occurring. At the same time, we must grasp the rhythm and intensity of risk prevention, avoid the simultaneous tightening of related measures, prevent the occurrence of adverse additive effects, and ensure the stability of fiscal operations with the effectiveness of risk prevention and control.

Fifth, it is binding to accept supervision . Fiscal work has a wide range of contacts, involves many fields, and is at the focus of conflicting interests. All sectors of the society have paid close attention to it. Nowadays, in accordance with the requirements of the budget law, the supervision of the people ’s congress is becoming more and more stringent. The budget review and supervision of the people ’s congress has expanded to include expenditure budgets and policies. Budget monitoring has been implemented online. The management of state-owned assets must be reported to the Standing Committee of the National People ’s Congress. The budget execution and other revenue and expenditure supervision and inspection functions have also been adjusted to bear the responsibility of the audit department; the people have paid more and more attention to the formulation and introduction of fiscal policies, the allocation and management of fiscal funds, and the openness and transparency of budget information. Therefore, financial departments at all levels should strengthen the awareness of supervision, actively do a good job of contacting and serving the people's congress representatives and CPPCC members, and consciously accept the supervision of the People's Congress in accordance with the law, democratic supervision by the CPPCC, audit supervision, patrol inspections, and supervision by public opinion. On the one hand, we actively reflect on the situation, listen to suggestions, and respond to concerns to create a better financial management environment; on the other hand, we can identify problems in time, analyze the reasons, and grasp rectification, and then improve the system, strengthen management, and deepen reforms, and further promote financial management in accordance with the law and sunshine. Financial management and scientific financial management. (The author is the secretary and director of the Party Group of the Anhui Provincial Department of Finance)

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