Is 1 trillion special government bonds lower than expected? Expert: leave room for follow-up policy

Is 1 trillion special government bonds lower than expected? Expert: leave room for follow-up policy
On May 22, the third session of the 13th National People’s Congress opened, and Premier Li Keqiang gave a government work report.Regarding the scale of special government bond issuances generally concerned by the market, the report proposes that proactive fiscal policies should be more proactive and promising. The deficit rate for this year is planned to be 3.With a plan of more than 6%, the scale of the fiscal deficit increased by 1 trillion compared with last year, and at the same time, 1 trillion special anti-epidemic bonds were issued.This is a special growth rate in a special period. All the above 2 trillion will be transferred to localities, and a special transfer payment mechanism will be established. The funds will reach the grassroots of the city and county directly to benefit enterprises and the people.Including support for tax and fee reductions, rent and interest rate cuts, expansion of consumption and investment, etc., and strengthening of public finance attributes, it is impossible to detain and retain embezzlement.Markets of various countries generally predict that the scale of the issuance of special national debt will be between 1 trillion and 2 trillion US dollars. There has also been a discussion in the market on whether the fiscal deficit should be monetized appropriately. Is the 1 trillion issuance exceeding expectations?Lian Ping, chief economist and dean of the Institute of Phytosanitary Investment, and chairman of the China Chief Economist Forum, said to Sauna and Yeewang that the scale depends on how the finances are digging up resources in other areas. This report also pays special attention toMake better use of relatively idle funds while reducing central government expenditures.”If there is still room for digging, it is necessary to consider whether it is necessary to borrow too much debt.At the same time, it also leaves room for future proactive fiscal policies. I don’t know what will happen next in the international market.Therefore, this is not the upper limit of market expectations.”Lian Ping analysis said.Xu Hongcai, the deputy director of the Economic Policy Committee of the China Association for Policy Research, told Sauna and Yewang that our fiscal deficit is very stable. From the scale of the issuance, it shows that there is still a lot of room for policy and the use of a lot of strength has been overcomeDifficulties.He mentioned that the situation in the United States and Europe is even worse, and the scale of corporate bailouts in the early days has exceeded 10% of GDP, and the current situation is not as pessimistic as the market imagines.Recognizing the monetization of the fiscal deficit, he believes that there is no need at all, “not to this extent.”” Sauna, Ye Wang Cheng Weimiao editor Wang Jinyu proofread Chen Diyan