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    今天黑龙江福彩22选5 / Opinion / Opinion Line

    国家授权正规彩票平台:Expanding deficit will inject vitality into the economy

    By Hu Yifeng | China Daily | Updated: 2018-11-16 07:33
    [Photo/VCG]

    今天黑龙江福彩22选5 www.fawqa.com Editor's note: Some people insist that the Chinese government should exhaust all means to keep its financial deficit below 3 percent of the gross domestic product, so as to control financial risks, but columnist Hu Yifeng comments in a post:

    The Government Work Report issued in March said that the government deficit this year will be kept under 2.38 trillion yuan ($343 billion), or 2.6 percent of the GDP.

    But the uncertainties with and the downward pressure upon the economy so far this year are more serious than the projection in March. So it is highly probable the government deficit will be more than that.

    The question is whether the government should hold fast to a certain point, say, 3 percent, as some argue.

    In fact, there is no need to make 3 percent the ceiling. China's government debt is 15 percent of its GDP, much lower than the global average, which means it has considerable room to increase liquidity and cut tax.

    Both measures will directly stoke the rise of the deficit rate. But moderately expanding the deficit can help to inject vitality into the economy and iron out its fluctuations.

    In fact, the actual deficit rate in China has already surpassed 3 percent "alert line", if the local governments' long-term special project debt bonds are counted in.

    The past 20 years show China's leverage rate drops when the economy grows fast, and vice versa. And the government still has a lot of untapped assets in various forms to reduce the debt risks, which can also be digested through expanding domestic demand and promoting consumption.

    It is advisable to support the social security fund with State-owned assets so as to relieve the private enterprises' burden in paying for their employees' social insurance as it is stipulated by the law.

    More needs to be done than five years ago when China vowed to deepen reform and opening-up.

      
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  • 文化山西:唐代山西作家有多少? 2019-04-17
  • 黄建盛会见港龙会、澳龙会、广东省投资商会代表团一行 2019-04-17
  • 【学习时刻】管清友:归本源、化风险、促改革,让金融成为经济发展的重要动力 2019-03-31
  • 山西涉黑团伙被通缉 头目是法院副院长 2019-03-31
  • 古丈举全县之力投入抗洪抢险 现已转移7885人 2019-03-24
  • 经合组织专家:中国坚持改革开放对全球化进程至为重要 2019-03-19
  • “网红”章丘铁锅曾一锅难求 如今小作坊停业现滞销 2019-03-06