The multiplier effect of a package of policies to promote domestic demand through fiscal and financial coordination has shown initial effectiveness. The latest data from the Ministry of Finance shows that since the policy was introduced seven months ago, about 113 million residents and 6.22 million enterprises have received policy support. Four investment promotion policies and two consumption promotion policies have cumulatively supported the issuance of over 20 trillion yuan of new credit in related fields, an increase of over 880 billion yuan or 4.5% compared to the same period last year.
Since August, policy support has continued to increase by expanding the scope of interest subsidies, increasing the number of handling institutions, and raising the upper limit of quotas. Vice Minister of Finance Liao Min recently revealed at a press conference of the State Council Information Office that new policies and measures will be introduced in the second half of the year, in coordination with the central bank and other financial management departments, to promote the normalization and long-term linkage between finance and finance.
One of the highlights of this year's more proactive fiscal policy is the innovative establishment of six policy tools for promoting domestic demand through fiscal and financial coordination. The central government has specially allocated 100 billion yuan of funds, and through the transmission chain of fiscal guidance, financial investment, and market operation, the policy effect of '1+1>2' has been achieved, "said Liao Min.
From January to July, the four investment promotion policies have cumulatively supported approximately 1.51 trillion yuan in private investment. A person in charge of an energy industry company introduced to me that in the past, the amount of bank loans did not exceed 10 million yuan and the term did not exceed 1 year. After the policy was introduced, he has accumulated 13 million yuan and 3-year medium and long-term loans, which solved the urgent need for concentrated construction in spring, "said Liao Min.
In terms of promoting residents' consumption, from January to July, two consumption promotion policies have cumulatively supported residents' consumption by about 1.88 trillion yuan. This not only empowers service industry operators from the supply side, but also comprehensively supports service consumption areas such as catering and accommodation, cultural entertainment, and health and elderly care, increasing the supply of high-quality services; By increasing residents' consumption capacity from the demand side and resonating with policies such as consumer subsidies, trade in, and incentive invoices to promote consumption, it has effectively supported the daily consumption of the majority of residents.
On August 21st, the Ministry of Finance, the People's Bank of China, and the State Administration for Financial Regulation issued a notice on further improving the policy of promoting domestic demand through fiscal and financial coordination, proposing three measures to expand the scope of interest subsidies, increase the number of handling institutions, and raise the upper limit of the quota, which will be implemented from that month onwards.
After policy optimization and improvement, the number of institutions handling loan interest subsidies for small and medium-sized enterprises and service industry operators has further expanded from about 100 to about 400, including 21 national banks and city commercial banks with financial regulatory ratings of 3A or above, rural cooperative financial institutions, private banks, and foreign banks, covering a wide range of urban and rural operators.
In order to better meet the investment and consumption needs of business entities, the upper limit of loan size has also been further increased. Among them, the upper limit of loan size for small and medium-sized enterprises eligible for interest subsidy policies has been increased from 50 million yuan to 75 million yuan; The upper limit of loan scale for service industry operators who enjoy the interest subsidy policy has been increased from 10 million yuan to 20 million yuan. At the same time, on the basis of the previous fixed asset loans, the financial department has also included the newly issued working capital loans in the policy scope of subsidized loans for small and medium-sized enterprises.
The "red envelope" for consumer interest subsidies has been upgraded again. Starting from August, the upper limit of interest subsidies for personal consumer loans eligible for the policy has been increased from 3000 yuan to 5000 yuan. The reporter learned that several banks including Bank of China, Industrial and Commercial Bank of China, and Agricultural Bank of China have successively clarified the latest implementation points of credit card installment interest subsidy policies. The scope of interest subsidy has been expanded from credit card bill installment to include various installment products such as special installment (including car installment, decoration installment, etc.), consumption installment, and advance cash installment, with an annualized interest subsidy ratio of 1 percentage point. Consumers can enjoy discounted interest as long as they use credit card installment payments for consumption, "said Liao Min.
In order to further improve the fiscal and financial coordination mechanism, guide and mobilize more financial resources and social capital to invest in local economic and social development, local policies tailored to local conditions are also steadily being promoted. Recently, Anhui has released a plan for the coordinated implementation of fiscal and financial policies, focusing on improving the effectiveness of existing policies, promoting tool coordination and linkage, and tapping into the potential for transforming financial resources. This includes deepening the pilot program for self audit of special bonds, promoting the bond loan combination model, and deepening the reform of "agricultural insurance+". Fujian has made it clear that provincial-level technical renovation loans can be combined with national equipment renewal subsidies, with a maximum subsidy of 2.5%.
When it comes to the key focus of financial coordination in the second half of the year, Li Xuhong, Vice President of Beijing National Accounting Institute, believes that it is not simply about increasing the number of policies, but about achieving a balance between quantity and structure while seeking progress in stability, further improving the accuracy, effectiveness, and sustainability of proactive fiscal policies. On the one hand, attention should be paid to whether policies can better meet the actual needs of enterprises and residents, supporting small and medium-sized enterprises, private investment, and service industry operators, while enhancing residents' consumption ability through subsidized consumer loans, and promoting better policy transmission to counties, parks, and grassroots levels. On the other hand, it also depends on whether promoting consumption and investment can form a virtuous supply and demand cycle.
Ma Hongfan, director and researcher of the Financial Research Center of the Chinese Academy of Fiscal Sciences, suggested that in the future, cross departmental data sharing mechanisms should be improved, and relevant data should be analyzed and utilized in a coordinated manner to accurately assess the effectiveness of a package of policy implementation. At the same time, further enrich the ways of fiscal and financial coordination, comprehensively use tools such as "subsidies, rewards, allowances, reimbursements, and investments", and build a multi-level fiscal and financial coordination policy system.