III. Major Tasks for 2022
This year, we face heavy tasks and many challenges in economic and social development. We should follow the decisions and requirements of the Party Central Committee with Comrade Xi Jinping at its core, apply the new development philosophy in full, in the right way, and in all fields of endeavor, move faster to create a new pattern of development, and promote high-quality development, so as to deliver solid outcomes in all areas of our work.
1. Achieving stable macroeconomic performance and keeping major economic indicators within the appropriate range
We must continue to ensure stability on six fronts and maintain security in six areas. We have both macro-policy tools and space available to us, and we should use them to intensify cross- and counter-cyclical adjustments and to provide strong support for a stable economic performance.
We will see that the proactive fiscal policy is more effective. We have set the deficit-to-GDP ratio for the year at around 2.8 percent, slightly lower than last year, and this will boost fiscal sustainability. It is projected that fiscal revenue will continue to grow in 2022. In addition, we also have available to us the surplus profits of state-owned financial institutions and state monopoly business operations from recent years turned over in accordance with the law and funds transferred from the Central Budget Stabilization Fund.
This will make it possible for government to increase expenditures by more than two trillion yuan over last year, putting significantly greater fiscal resources at our disposal. New funds will be channeled to local levels of government and used mainly to ease the difficulties of enterprises, stabilize employment, meet living needs, and increase consumption and demand.
This year, central government expenditures will rise by 3.9 percent, but the budgetary spending of central government departments will continue to register negative growth. Central government transfer payments to local governments will come to close to 9.8 trillion yuan. This figure represents a growth of 18 percent, or around 1.5 trillion yuan, and is the largest increase in recent years. The central government will place more budgetary funds under the mechanism for direct allocation to prefecture- and county-level governments, and provincial-level governments should also provide additional fiscal support to these levels. It is imperative that local governments are both able and motivated to carry out policies that will benefit businesses and people.
We will use government investment funds to stimulate and expand effective investment. This year, special-purpose bonds for local governments will total 3.65 trillion yuan. We will, taking a performance-oriented approach, ensure that investment funds stay with the projects they are allocated to, and appropriately widen the scope of usage for such funds. We will support follow-up financing for ongoing projects, and begin construction on major projects that are ready for launching, new types of infrastructure, and renovations of outdated public facilities.
The lion's share of investment in China comes from the non-government sector. We will give full play to the leveraging role of major projects and government investment and refine relevant supporting policies to keep non-government investors fully motivated.
Government will keep its belt tightened and keep spending low to benefit the people. We will improve the mix of government spending so as to ensure funding for key areas and strictly control general expenditures. Budgetary funds and assets sitting idle will be put into good use. Governments at every level need to operate within their means and economize where possible, and central and provincial-level governments should take the lead in this regard.
