Steady Investment Of The State Council: Surplus Financial Funds For Key Construction

Promoting the co-ordinate use of financial funds was one of the main topics of the executive meeting of the State Council yesterday, and 8 related measures were introduced.

These include: - the funds for regional and departmental balances and the unused funds carried out for two consecutive years shall be restructured for key construction.

Less than two years' carry over funds should be accelerated.

It can also be used in other urgent areas as required.

Starting from 2016, we should appropriately reduce the scale of the next fiscal budget for the regions and departments with larger financial stocks at the end of last year.

- establishing a dynamic adjustment mechanism that slows down the implementation of the project budget, and the same level of finance can be recovered at a certain rate for other purposes.

The special pfer payment should be cleaned up, and the allocation of funds and the right of project confirmation should be handed over to the local authorities.

Strengthen the overall coordination of funds within and across departments to avoid duplication of expenditure and solidifying investment.

- putting the unused local government stock debt funds into budgetary management and co ordinate with new debt funds.

Government list and inventory management should be implemented. Government funds and state capital management budgets should be added to the general public budget.

- establishing a mechanism for balancing annual budgets and carrying out rolling financial planning in water conservancy, social security and other fields.

"This is"

"Refinement", from the regional and inter departmental, to the allocation of financial funds in the region and departments have made a comprehensive provision, the purpose is to hope that fiscal policy can play a better role in stabilizing growth.

Morgan Stanley Huaxin securities macro research director Zhang Jun said.

He said through analysis.

And the Department's balance / carry over fund "and" appropriately reducing the scale of the next year's budget for areas and departments with large financial stock funds "will greatly promote the use of stock funds by local governments and departments so that the rate of capital investment of fixed assets can be significantly improved from the financial perspective.

In addition, "clearing the integration of special pfer payments, assigning capital allocation and project determination rights to the place, allowing the local to make a preliminary trial on the basis of co-ordination", also reflects that the central authorities are giving greater power to the local governments in the allocation of funds and the right of project decision in revitalizing the stock.

This year's central policy keynote is "active fiscal policy and prudent monetary policy". Although monetary policy is loosely oriented in practical operation, the flow mechanism of monetary policy has been precipitated in the financial system because of the poor pmission mechanism of monetary policy.

The active fiscal policy is subject to the decline of the two level revenue from the central and local governments, especially the central government's actions to clean up and rectify the debts of local governments.

Therefore, Zhang Jun believes that, as far as active fiscal policy is concerned, since there is no breakthrough in total volume, we can only make an issue on the allocation structure and efficiency of funds, which is also consistent with the guiding principle of "invigorating stock and making good use of increment" advocated by the Central Committee for a long time.