CCTV News:On August 16th, the National Bureau of Statistics released various economic operation data in July. The added value of industrial enterprises above designated size increased by 6.4% year-on-year, the total retail sales of social consumer goods increased by 8.5%, and the total import and export of goods increased by 11.5%. After the first half of the journey, China’s economy continued its positive trend of stable recovery.
Politburo meeting of the Chinese Communist Party has deployed its economy in the second half of the year. A proactive fiscal policy should enhance policy efficiency, reasonably grasp the progress of investment within the budget and the issuance of local government bonds, and promote the formation of physical workload at the end of this year and early next year.
What is the important purpose of using the expression "physical workload" for the first time? Let’s listen to the opinions of experts in the column "On Tao".
Jia Kang, former director of the Institute of Fiscal Science of the Ministry of Finance and president of Huaxia New Institute of Supply Economics:Everyone has noticed the expression of "physical workload", which is very innovative, but it is not a new word in academic terms. Physical workload. What does it mean? In the middle of economic activities, the value formed by the concepts corresponding to some directly measurable material forms, such as the kilometers completed by road construction and the square kilometers covered by the workload completed by geological survey, is called physical workload. The central government now puts special emphasis on performance, which is a core concept that we should grasp and consider before, during and after government actions. It is to embody public resources as funds that can be used financially, and its use really lies in the realization of the people’s wishes for a better life. That is to say, the central authorities have repeatedly emphasized doing practical things, daring to take responsibility and doing something. This practical thing should be in the most solid state, and the physical workload is a very good indicator to measure, and it is necessary to assess the physical workload at the end of this year and early next year. This is a central guiding spirit and specific requirements for improving performance.
How to balance the risks of local debt and how to improve its efficiency?
Jia Kang, former director of the Institute of Fiscal Science of the Ministry of Finance and president of Huaxia New Institute of Supply Economics:First of all, we must give a proper name to local debt and engage in a market economy. It is impossible for the government to be completely debt-free, and the socialist market economy must also make rational use of public sector debt as a policy tool. However, it is necessary to take precautions against risks and reasonably measure liabilities. Everyone is concerned about this matter. The central authorities also require further optimization of institutional arrangements and mechanism construction in local debt, especially to prevent the hidden local debt from bringing adverse effects. Risk control in this area has been included. In the past few years, it was clearly stated that this is one of the tough battles, and its positive effects should be played regularly.