NEWS CENTER

A new round of investment or huge cement benefit


Release time:

Nov 24,2011

Bai Jingming, deputy director of the Finance Department of the Ministry of Finance, said at the Local Debt Forum of the Central University of Finance and Economics on the 22nd that fiscal policy may be launched again in the future. He predicted that there will be new growth points in future fiscal investment, and the scale of the new round of fiscal investment will not be smaller than the previous round of investment. People in the cement industry pointed out that infrastructure investment is very important to the cement industry. Just like the 4 trillion investment in 2008, it has driven the rapid development of the cement industry in the whole country. "If this round of investment is implemented properly, it will undoubtedly be a good thing for the cement industry." Although the recent investment growth rate has been declining for several consecutive months, institutions also predict that future investment growth will be further

Bai Jingming, deputy director of the Finance Department of the Ministry of Finance, said at the Local Debt Forum of the Central University of Finance and Economics on the 22nd that fiscal policy may be launched again in the future. He predicted that there will be new growth points in future fiscal investment, and the scale of the new round of fiscal investment will not be smaller than the previous round of investment. People in the cement industry pointed out that infrastructure investment is very important to the cement industry. Just like the 4 trillion investment in 2008, it has driven the rapid development of the cement industry in the whole country. "If this round of investment is implemented properly, it will undoubtedly be a good thing for the cement industry."

Although the recent investment growth rate has declined for several consecutive months, various institutions also predict that the future investment growth will further decline. Bai Jingming still said that a new round of investment planning is being formed, in which affordable housing, water conservancy construction and transportation investment will continue to be investment growth points for a period of time.

According to its forecast, the overall scale of the next round of fiscal investment will not be lower than the fiscal expenditure invested in the last round of economic crisis. Bai Jingming pointed out that there are several trends in the current fiscal expenditure that are worth noting. First of all, the expansion of fiscal expenditure has become an inevitable trend, and my country is constantly increasing expenditures on basic public services.

In terms of local debt, Bai Jingming said that in recent years, the central government's dependence on debt has increased, and the rigid growth of the scale of fiscal expenditure and the reform of the fiscal system will continue to put pressure on local debt issuance in the future. According to its analysis, the high growth of fiscal revenue in the past mainly came from tax growth, especially the proportion of import tax and income tax has been rising in recent years. "If fiscal revenue can still maintain a high growth rate in the future, the pressure on local governments to issue bonds will also be reduced, but the sustainability of high financial growth needs to be studied."

Regarding the ongoing pilot reform of bond issuance in the four places, Bai Jingming said that the pilot has not yet clarified whether local governments can become the main body of bond issuance in the future, and pointed out that the current repayment, interest repayment and fund use of local bond issuance are scattered In all aspects of public finance, a complete system has not been formed, and it is not clear which funds come from debt. It is suggested that a special debt budget should be explored in the future.