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What Aspects Has Fiscal Expenditure Been Spent
Updated:2017.01.19

  Continues expanding fiscal expenditure

  ”Last year, fiscal expenditure in Sichuan has amounted to 801.19 billion yuan.” Relevant responsible official from Sichuan Provincial Department of Finance has indicated that Sichuan’s fiscal expenditure has been over 600 billion yuan in 2013, over 700 billion yuan in 2015 and 800 billion yuan in 2016, continuing to expand in fiscal expenditure.

  Mr. Li Jianjun, Deputy Dean of School of Public Finance and Taxation, Southwestern University of Finance and Economics, explains that the continuous expansion of fiscal expenditure in Sichuan has provided powerful support for economic and social development of Sichuan.

  Continuous declining in three public expenses (including expenses in buying and using government cars, expenses in overseas trips and expenses in official receptions)

  What aspects has fiscal expenditure been spent? Relevant responsible official from from Sichuan Provincial Department of Finance answers that there are three major aspects, including expense of promoting operation, improving people’s livelihood, and enhancing development, accounting for 15.3%, 65% and 19.7% respectively.

  The proportion of expenses in promoting operation has declined 0.2% in 2016. Actually, since 18th CPC National Congress, the expenses in this aspects have in declining annually. Especially there is comparatively strict control on general expenditure such as expenses in three public expenses. For instance, the funds from provincial finance have lowered to 300 million yuan in 2016, down 17%. From 2012 to 2015, the expenses in three public expenses have been 715 million yuan, 598 million yuan, 408 million yuan, 363 million yuan respectively, declining in 5 successive years.

  The proportion on improving people’s livelihood has amounted to over 500 billion yuan, the largest part, mainly used for projects in health, social security, education, and other livelihood improvement projects. The expenses on improving people’s livelihood have been increasing in multiple year accounting to 65% in 2014 and maintaining this level in 3 successive years. The official has also introduced that due to the increasing in total fiscal expenditure, the expenses on improving people’s livelihood have been increasing although the percentage remains the same.

  The expenses on enhancing development have been over 150 billion yuan, accounting for about 20%, which are mainly used for supporting industrial development, strengthening infrastructure and so on. The percentage has been increased by 0.2%.

  Mr. Li Jianjun explains that this fiscal expenditure structure is comparatively healthy. We should adhere to maintaining the proportion of promoting people’s livelihood, declining the proportion of promoting operation, improving the proportion of development, combining the short-term development requirements of maintaining stable economic growth and benefiting people’s livelihood and the long-term development requirements of fostering new driving energy. 

  Development strategies determine the major aspects in fiscal expenditure

  What is 800 billion yuan used for?

  Reports have indicated that poverty alleviation, green development, people’s livelihood guaranteeing, and innovation driving development are the major fields in fiscal expenditure. Specifically, the investment on poverty alleviation, green development, and innovation driving development has amounted to 161 billion yuan, 114.3 billion yuan, 95.4 billion yuan respectively. “It is not hard to find that the major fields in fiscal expenditure are completely corresponding to development strategies.” Li Jianjun explains that poverty alleviation is the priority of Sichuan. That is to say, development strategies determine the major fields in fiscal expenditure. In 2017, the fiscal supporting on the major aspects will be increased.

  Fund has been a frequent word

  Fund has been a high frequency word with remarkable attention. “It is related to the financial reform promoted in Sichuan.” Relevant responsible official from Sichuan Provincial Department of Finance indicates that in recent years Sichuan has changed the direct supporting method to indirect leading for accelerating to promote development through financial supporting. Especially, Sichuan has supported industrial development through establishing industrial funds instead of direct subsidiary to drive the joint investment of social funds. By the end of 2016, Sichuan Provincial People’s Government has invested 7.2 billion yuan and established 17 industrial leading funds in all fields. The total scale for funds has been over 47 billion yuan adding to social capital.

  Explaining the debt problems concerned by representatives

  ”The report has specified the debt problems to respond representatives’ concerns. The tables concerning debt situation have increased to 6 from 1 in last year which aim to reflect debt situation more comprehensively.” Officials from Sichuan Provincial Department of Finance indicates that the report has actively responded to the details and management of government debts which attracted widely attention in  the Fourth Session of the 12th Sichuan Provincial People's Congress.

  How much does Sichuan owe? According to the report, the debt balance of local governments in Sichuan is 781.2 billion yuan by the end of 2016, lower than the limit volume of provincial government debt, 839.7 billion yuan, indicating that it is relatively under control for debt risks.

  It is worth mentioning that last year Sichuan has actively issued replaceable bonds of local governments. The official has explained that replaceable bonds could not only eliminate the risks of current debt payment but also lower debt cost due to its lower interest rates than bank loans. Sichuan has issued 230.7 billion yuan replaceable bonds with expected interest declining over 10 billion yuan.

 
 
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