Recently, a series of major policies have been rolled out in quick succession, with the fiscal and financial "policy mix" accelerating its effects, injecting strong momentum into the stable operation of the national economy and its continued progress toward innovation, optimization and improvement.
On October 1, Lan Fo'an, Party Secretary and Minister of Finance, published a signed article titled "Implementing a More Proactive Fiscal Policy with Precision and Effectiveness" in Qiushi magazine, systematically explaining the positioning, intensity and implementation path of this year's fiscal policy. The article noted that this year's general public budget expenditure is set at over 30 trillion yuan, and the scale of newly added various government bonds has reached 11.89 trillion yuan. These figures directly reflect the intensity of fiscal policy efforts. This round of fiscal fund deployment places greater emphasis on precision drip irrigation and quality improvement, stabilizing the current economic cycle on the one hand, and focusing on cultivating new quality productive forces on the other, balancing growth stabilization with structural adjustment.
The article noted that policy implementation has been front-loaded, with budget allocations made as quickly as possible to ensure early implementation and early results. From January to August, central general public budget expenditures at the corresponding level grew by 6% year-on-year. Adhering to the strategic foundation of expanding domestic demand, solid progress has been made in the "Two Major" construction and "Two New" initiatives, the pilot scope for special bonds "self-review and self-issuance" has been steadily expanded, and a package of fiscal-financial coordination policies to boost domestic demand has been introduced, further opening up space for fiscal policy to take effect and promoting household consumption and expanding effective investment. With the release of fiscal policy and other macroeconomic policy effects, China's economy grew by 4.7% year-on-year in the first half, continuing to rank among the top major global economies in terms of growth rate.
Fully leveraging the leveraging and guiding role of fiscal funds is inseparable from the supporting role of monetary policy. On September 29, the People's Bank of China announced adjustments and improvements to four monetary policy tools, including a 0.25 percentage point cut in the interest rate on Pledged Supplementary Lending (PSL); expansion of the areas supported by Pledged Supplementary Lending; an increase of 200 billion yuan in the re-lending quota for technological innovation and technological transformation; and an increase of 500 billion yuan in the re-lending quota for supporting agriculture and small businesses. The expansion of structural tools will further guide financial resources toward science and technology enterprises, small and micro businesses, rural revitalization and other areas, reducing costs, expanding coverage and increasing quotas to achieve precision drip irrigation.
Fiscal policy and financial policy have different divisions of labor but share the same goals. Only through coordinated interaction can policy effectiveness be amplified. Since the beginning of this year, a package of fiscal-financial coordination policies to boost domestic demand has been continuously implemented. On September 29, the Ministry of Finance, together with the People's Bank of China and the National Financial Regulatory Administration, issued the "Notice on Implementing the Housing Loan Interest Subsidy Policy for Residents," effective from October 1. This move further expands the scenarios for policy coordination. Whether it is accelerating the construction of major projects, science and technology enterprises and small and micro businesses receiving financial support, or housing loan interest subsidies supporting the release of rigid demand, all are concrete manifestations of policy coordination.
The fourth quarter is a critical window for the year's economic finale. Relying on the coordinated efforts of fiscal policy and financial policy, China's economy is well-positioned to continue progressing toward innovation, optimization and improvement, and to consistently achieve new accomplishments on the path of high-quality development.