Li Keqiang Presided over State Council Executive Meeting: Asked Fiscal and Monetary Policies to Stabilize Economic Market with Employment Priority as Guide
2022-05-12 14:26

Premier Li presided over the State Council executive meeting on May 11, demanding that fiscal and monetary policies be employment-oriented and stabilize the economic market; Deploy to further revitalize existing assets, broaden social investment channels, and expand effective investment; It was decided to waive the interest of national student loans for college graduates with financial difficulties in stages and allow deferred repayment of principal.

 

The meeting pointed out that due to the unexpected impact of the new epidemic and changes in the international situation, the new downward pressure on the economy further increased in April. It is necessary to implement the arrangements of the CPC Central Committee and the State Council, strengthen confidence, face up to difficulties and challenges, focus on stabilizing the economic market, provide a foundation for coordinating all work, and greet the victory of the 20th National Congress of the Communist Party of China with practical actions. First, fiscal and monetary policies should give priority to employment, and measures such as tax reduction, deferred payment of social security premiums and reduction of financing costs should all focus on stabilizing market players, stabilizing jobs and employment, so as to ensure basic people's livelihood, stabilize growth and promote consumption. It is necessary to further study and use a variety of policy tools, mobilize local enthusiasm and compact responsibilities, and effectively stabilize jobs and employment. The second is to ensure price stability. The supply of basic livelihood needs in China is abundant, but it should not be taken lightly. It is necessary to grasp the grain production, ensure the stability of grain output and supply, and lay a solid foundation for stabilizing prices. While doing a good job in epidemic prevention and control, we should further smooth logistics, especially logistics in key areas, and maintain the stability of industrial chain and supply chain. The third is to ensure the normal supply of energy. In the early stage, 50 billion yuan of renewable energy subsidies were allocated to central power generation enterprises, and 20 billion yuan was injected through the state-owned capital operating budget, and then 50 billion yuan of subsidy funds were allocated and 10 billion yuan was injected to support coal-fired power enterprises to bail out and generate more electricity. It is necessary to optimize policies, strengthen coordination and release advanced coal production capacity safely and orderly. There must be no power cut-off. Fourth, give housing provident fund policy support to enterprises and employees who have difficulties at present. Before the end of this year, enterprises can apply for deferred payment, and employees' normal withdrawal of provident fund and application for provident fund loans will not be affected, which is expected to reduce the burden on enterprises by more than 90 billion yuan. Employees who fail to repay provident fund loans normally will not be overdue. All localities can reasonably increase the withdrawal amount of provident fund rental housing. Fifth, pay close attention to the measures to expand the policy of deferred payment of endowment insurance premiums and extend the implementation period, and guide local governments to subsidize the water and electricity expenses of small and medium-sized enterprises and individual industrial and commercial households.

 

The meeting pointed out that revitalizing existing assets such as infrastructure is conducive to broadening social investment channels, expanding effective investment and reducing government debt risks. First, we should encourage the implementation of revitalization through the issuance of real estate investment trusts. Guide local governments to demonstrate attractive projects and treat all kinds of market players involved in investment equally. Second, we must improve the market-oriented operation mechanism and improve the project income level. Special debt can support the recovery of funds into new projects. Third, we must adhere to the principle of marketization and rule of law, and determine the transaction price openly and ensure the stable operation of infrastructure and protect public interests.

 

The meeting pointed out that the national student loan is an important system to ensure students from economically disadvantaged families to receive higher education fairly. This year, the number of college graduates reached a record high. In order to help them reduce their burdens and find jobs, the meeting decided to exempt graduates from the interest of national student loans that should be repaid this year and previous years, and the interest-free funds should be borne by the state finance; The principal can be postponed for one year, excluding compound interest. Graduates who fail to repay their loans in time this year due to the epidemic situation will not affect credit reporting. It is estimated that interest-free will be more than 2 billion yuan, and deferred repayment of principal will be more than 5 billion yuan, benefiting more than 4 million graduates. Universities and related financial institutions should strengthen the convergence of work, and make special efforts to make policies enjoy as soon as possible.

 

The meeting studied other matters.