On the afternoon of April 22, 2024, the State Council Information Office held a press conference. Vice Minister of Finance Wang Dongwei, Director of the Treasury Department Li Xianzhong, and Director of the Budget Department Wang Jianfan attended the conference to introduce the fiscal revenue and expenditure situation for the first quarter of 2024 and answer questions from reporters.
At the meeting, Wang Jianfan, Director of the Budget Department of the Ministry of Finance, stated that in 2024, the Ministry of Finance, together with relevant departments, will continuously optimize and adjust the investment areas of special bonds and the scope of project capital. More new energy, new infrastructure, and new industries will be included in the investment areas of special bonds, and "independent new energy storage" and "comprehensive treatment of water environment in key river basins" will be added to the support scope of special bonds.
At the same time, guide local governments to reserve special bond projects around the key investment areas determined by the Party Central Committee and the State Council, and strictly implement the list of prohibited special bond projects. Collaborating with relevant departments to arrange local submissions for the demand for new special bond projects in 2024, the Ministry of Finance is currently strengthening the review and control of projects in terms of project maturity, financing income balance, and compliance with fund utilization, in order to improve the quality of project reserves.
In the first quarter of 2024, various regions issued special bonds within the pre issued quota for new special debts, mainly used for the construction of key areas such as municipal construction and industrial park infrastructure, social undertakings, transportation infrastructure, and affordable housing projects determined by the Party Central Committee and the State Council. Special bond funds played a positive role in strengthening the foundation, filling gaps, benefiting people's livelihoods, and expanding investment. The issuance scale in the first quarter was smaller than in previous years. On the one hand, in response to special factors such as the impact of the epidemic, the issuance scale at the beginning of the year was increased in previous years. On the other hand, it was also related to local project construction funding needs, winter and spring construction conditions, bond market interest rates, and other factors. At the same time, a lot of work was done to improve the quality of special bond projects and strengthen pre project preparation. Overall, the issuance scale for the whole year is still in line with expectations.
Next, the Ministry of Finance will work with relevant departments to guide local governments to reasonably grasp the pace of special bond issuance, optimize the pace and intensity of government investment, guide and guarantee the funding needs of major projects, improve the performance of bond fund utilization, give full play to the driving and amplifying effect of government investment, consolidate and enhance the positive trend of economic recovery, and continue to promote the effective improvement of quality and reasonable growth of quantity in the economy.
The details are as follows:
1、 Introduction stage
Xie Yingjun, Deputy Director and Spokesperson of the Information Bureau of the State Council Information Office: Good afternoon, ladies and gentlemen! Welcome to the press conference of the State Council Information Office. Today, we are conducting a routine economic data release for the first quarter, inviting Mr. Wang Dongwei, Deputy Minister of Finance, to introduce the fiscal revenue and expenditure situation for the first quarter of 2024 and answer any questions you may have. Also attending today's press conference are Mr. Li Xianzhong, Director of the Treasury Department of the Ministry of Finance, and Mr. Wang Jianfan, Director of the Budget Department. Now, let's first invite Mr. Wang Dongwei to introduce the situation.
Wang Dongwei: Good afternoon, ladies and gentlemen, media friends! It's a pleasure to meet you all again, and I would like to express my special gratitude to all media friends for their long-term attention, concern, and support towards financial work. Firstly, I would like to report on the financial revenue and expenditure in the first quarter of this year.
Continuously make good use of fiscal policy space, strengthen the coordination of fiscal resources, optimize the combination and use of various policy tools, and promote the sustained recovery and improvement of the economy. In the first quarter, the fiscal revenue and expenditure remained stable, showing the following three characteristics:
Firstly, fiscal revenue will continue to maintain a recovery growth trend based on comparable standards. In the first quarter, the national general public budget revenue was 6087.7 billion yuan, a year-on-year decrease of 2.3%. After deducting the impact of special factors, it can increase by about 2.2%, continuing the trend of recovery growth. Special factors include the increase in tax deferral for small and medium-sized manufacturing enterprises in the first few months of 2023, as well as the four tax reduction policies introduced in mid-2023 resulting in a tail end reduction in fiscal revenue for this year. The national tax revenue was 4917.2 billion yuan, a year-on-year decrease of 4.9%. After deducting the special factors mentioned above, tax revenue maintained a stable growth.
The second is the rapid growth of tax revenue in industries such as cultural tourism consumption and advanced manufacturing. In terms of the service industry, the tax revenue of the accommodation and catering industry, which is highly related to resident consumption, increased by 44.7%, the tax revenue of the cultural, sports and entertainment industry increased by 26.7%, the tax revenue of the transportation, warehousing and postal industry increased by 6.8%, and the tax revenue of the retail industry increased by 5.7%, reflecting the continuous release of resident consumption vitality. In terms of the manufacturing industry, the tax revenue of the manufacturing industry in the first quarter decreased year-on-year. After deducting the incomparable factors such as the increase in the base of deferred tax entry for small and medium-sized enterprises in the manufacturing industry in the same period last year, stable growth was achieved. Despite being affected by incomparable factors, some sub sectors of the manufacturing industry still show a growth trend in tax revenue, performing well. For example, the tax revenue of railway transportation equipment manufacturing industry increased by 9.5%, and the tax revenue of computer manufacturing industry increased by 6.8%.
The third is that key expenditures are well guaranteed. Financial departments at all levels strengthened the overall planning of financial resources, accelerated budget allocation and the use of additional treasury bond funds, and strengthened financial support for major national strategic tasks and basic people's livelihood. At the same time, we will optimize the structure of fiscal expenditure, strictly implement the requirements of the Party and government organs to live a tight life, be generous with big money and stingy with small money, and concentrate our financial resources to accomplish great things. In the first quarter, the national general public budget expenditure increased by 2.9% year-on-year. In the main expenditure areas, social security and employment expenditure reached 127.08 billion yuan, an increase of 3.7%; Education expenditure reached 1043.6 billion yuan, an increase of 2.5%; Urban and rural community expenditure reached 561.4 billion yuan, an increase of 12.1%; Agricultural, forestry, and water expenditure reached 518.5 billion yuan, an increase of 13.1%; Housing security expenditure reached 204.9 billion yuan, an increase of 7.8%.
Next, the Ministry of Finance will solidly implement proactive fiscal policies, strengthen fiscal management and supervision, organically combine strengthening macroeconomic regulation, focusing on expanding domestic demand, cultivating new development drivers, and preventing and resolving risks, further improving the quality and effectiveness of fiscal policies, consolidating and enhancing the positive trend of economic recovery.
That's all for the overall situation of fiscal revenue and expenditure in the first quarter. Now, my colleagues and I are willing to answer everyone's questions. Thank you.
2、 Media questioning stage
Xinhua News Agency reporter: Just now Minister Wang introduced that fiscal expenditure increased by 2.9% in the first quarter, and key expenditures were effectively guaranteed. Could you please provide further details on the relevant expenses? Thank you.
Wang Dongwei: Thank you for your question. In the first quarter, while strictly implementing the requirements of tight living standards and controlling general expenditures, financial departments at all levels continued to increase their support for expenditures in key areas, with a total expenditure scale of nearly 7 trillion yuan in the national general public budget. Especially, despite the centralized settlement of related expenses and the increase in expenditure base after the transition of epidemic prevention and control in the same period last year, the first quarter of this year still maintained a growth of 2.9%, which is not easy, reflecting the proactive fiscal policy to advance and improve quality and efficiency. Here are three specific points that I will introduce to you:
First, all funds for additional issuance of treasury bond were released at the beginning of the year. The 1 trillion yuan of additional treasury bond issued in the fourth quarter of 2023 will be mostly used this year. By the end of February this year, the Ministry of Finance will allocate all the 1 trillion yuan of additional treasury bond issuance funds to local governments. From the data of the first quarter, the urban and rural community expenditure, agriculture, forestry and water expenditure, disaster prevention and emergency management expenditure that the additional treasury bond fund focuses on increased by 12.1%, 13.1% and 53.4% year on year, respectively, achieving double-digit growth.
Secondly, over 80% of the transfer payment budget has been allocated. In 2024, the central government will arrange a transfer payment of 10.2 trillion yuan to local governments, a comparable increase of 4.1%. After the approval of the central budget for 2024 by the National People's Congress this year, the Ministry of Finance, in accordance with the provisions of the Budget Law, promptly organized the issuance of budget approvals. As of early April, the central department budget for 2024 has been fully approved, and the central government has issued 8.68 trillion yuan in transfer payments to local governments, accounting for 85.1% of the initial budget; In general transfer payments and joint fiscal transfer payments, all eligible project funds have been allocated.
Thirdly, the progress of fiscal expenditure is reasonably accelerated. In the first quarter, 24.5% of the national general public budget expenditure was completed, higher than the average level in the past three years. From the specific expenditure items, the progress of social security and employment, health and hygiene, urban and rural communities, transportation, housing security and other expenditures is relatively fast. Among them, the progress of social security and employment expenditures is 30.7%, urban and rural community expenditures are 26.2%, and the progress of health and transportation expenditures is 25.1%, all exceeding the chronological progress.
That's all I have to answer for this question, thank you.
China Financial News: According to media reports, recently investors have actively subscribed for savings treasury bond, and some banks have encountered the situation of "one bond is hard to obtain". How do you view this phenomenon? Thank you.
Li Xianzhong: Thank you for your question. Savings treasury bond represent the national reputation, with guaranteed principal and interest, stable income, and have been favored by investors for a long time. Seen from the issuance of savings treasury bond in March and April this year, the overall situation was stable, but there was indeed a partial contradiction between supply and demand. To illustrate this problem, I will briefly introduce the varieties and issuing organizations of savings treasury bond. At present, savings treasury bond is divided into voucher type and electronic type. Among them:
Credential savings treasury bond are sold over the counter at bank outlets. Because the customer base of each outlet is different, the demand is also different. At present, it is still difficult to flexibly adjust the sales quota among outlets, resulting in supply and demand conflicts in some outlets. For example, in the process of issuing voucher type savings treasury bond in March, the overall sales progress of a large commercial bank in Beijing Branch on the first day was 70%, and the sales progress of each treasury bond was 10 days in total, and the first day sales progress was 70%. However, 14 of the 466 outlets in Beijing sold out within half an hour, which may cause some investors queuing up at the outlet counter not to buy treasury bond.
Electronic savings treasury bond can be sold both over the counter and online (mobile phone), and the sales quota can be flexibly adjusted between different banks, different outlets within banks, as well as over the counter and online (mobile phone). According to statistics, investors over 60 years old account for 55% of savings treasury bond investors. These investors prefer to buy bonds over the counter. In order to better protect the demand of these traditional customers for bonds, the sales quota of electronic savings treasury bond on the first day of issuance is moderately inclined to the counter, and the first day's sales quota over the counter accounts for 60% of the basic sales quota of all banks. Therefore, the demand for counter subscription can be basically met.
Since April, due to the influence of some banks' lowering deposit interest rates, suspending the sale of large deposit receipts and other factors, the attention of savings treasury bond has further increased. The electronic savings treasury bond issued in April sold 99.7% of the planned issuance on the first day of issuance, significantly faster than the average level in recent years. From the perspective of counter sales, most banks have sales hours exceeding 2 hours. The online (mobile) end can accommodate more investors to purchase at the same time, resulting in more concentrated sales. Some banks have experienced an instantaneous supply-demand contradiction on the online (mobile) end. The average online (mobile) end sales time of 32 banks is about half an hour, but 2 banks have a sales time of less than 1 minute, basically in seconds, and another 7 banks sell out within 6 minutes.
In order to further meet investors' demand for bonds, we will take the following four measures in the next step: First, we will pay close attention to the changes in the supply and demand relationship and sales of savings treasury bond, and study how to appropriately increase the issuance scale. The core of "difficulty in obtaining one debt" is strong demand and relatively insufficient supply, so our next step is to study increasing the issuance scale appropriately. The second is to study further reducing the single person purchase limit, so that savings treasury bond can benefit more investors. Third, on the basis of guaranteeing counter sales, we will continue to improve the information service level of electronic savings treasury bond, and steadily increase the online (mobile) sales quota of electronic savings treasury bond. At the same time, increase publicity and guide more investors to purchase bonds through online (mobile) platforms, improving the bond buying experience. Fourth, we will work with relevant departments to further optimize the quota distribution mechanism of voucher based savings treasury bond, better match outlets with actual demand, and study and optimize the medium and long-term arrangements for the issuance ratio of voucher based and electronic treasury bond savings to better meet investors' demand for bonds.
I will introduce these. Thank you.
China Business News: In the fourth quarter of last year, the central government issued more than one trillion yuan of treasury bond. Could you introduce the use and distribution of treasury bond funds in detail? And what measures does the Ministry of Finance take to strengthen fund supervision? Thank you.
Wang Jianfan: Thank you for your question. In accordance with the decisions and arrangements of the Party Central Committee and the State Council, and after being reported to the Standing Committee of the National People's Congress for review and approval, an additional 1 trillion yuan of treasury bond will be issued in the fourth quarter of 2023 to focus on supporting post disaster recovery and reconstruction and making up for the shortcomings in disaster prevention, mitigation and relief, which is of great significance for improving China's ability to withstand natural disasters as a whole and better guaranteeing the safety of people's lives and property. The Ministry of Finance will conscientiously implement and refine the work plan, and solidly and orderly carry out all work.
First, we carefully organized the issuance of treasury bond. After the Standing Committee of the National People's Congress reviewed and approved the plan for issuing additional treasury bond, the Ministry of Finance adjusted the plan for issuing treasury bond in the fourth quarter in a timely manner, optimized the treasury bond issuance window and maturity variety structure, mobilized members of the treasury bond underwriting syndicate to prepare for debt, ensured the smooth issuance of additional treasury bond, and raised sufficient funds. With the cooperation of all relevant parties, the issuance of 1 trillion yuan of treasury bond will be successfully completed by the end of 2023.
Second, we will ensure the distribution of treasury bond funds. The National Development and Reform Commission and the Ministry of Finance, together with relevant departments, have established a special working mechanism to timely organize the declaration and review of treasury bond projects. According to the list of projects determined by the special working mechanism, the Ministry of Finance released all the 1 trillion yuan of additional treasury bond funds to local governments in February this year in advance, and urged and guided local governments to implement specific units and projects in a timely manner, accelerate the arrangement and use according to the project construction progress, and form physical workload as soon as possible.
Third, do a good job in allocating funds for additional issuance of treasury bond. The Ministry of Finance has established a separate allocation mechanism for additional treasury bond treasury funds. In December last year, 500 billion yuan was allocated to local governments in two batches. In January and February this year, another 500 billion yuan was allocated to local governments in three batches. Two 500 billion yuan were allocated to local governments. In fact, 1 trillion yuan has been allocated to local governments to ensure that local governments do not affect project construction progress due to funds.
Fourth, establish a supervision system for treasury bond funds. The Ministry of Finance formulated the Administrative Measures for the Additional Issuance of treasury bond Funds in 2023 to standardize the allocation and use of treasury bond funds, improve the integrated budget management system, supervise the whole process of additional issuance of treasury bond project funds, promote local regulatory bureaus to establish a regular regulatory mechanism, timely identify and correct existing problems, promote local standardization of the use of funds, and improve the use efficiency.
In the next step, the Ministry of Finance will actively play its functional role, guide local governments to accelerate the implementation of projects, continue to supervise the issuance of additional treasury bond funds, ensure that precious funds are used on the cutting edge, and strive to improve the efficiency of fund use. Thank you.
CCTV reporter: We have noticed that in the first quarter of this year, the central government has introduced some policy measures to support new drivers of economic growth. Please introduce the relevant situation and what other policy considerations are needed in the next step? Thank you.
Wang Dongwei: Thank you for your question. I will answer this question. Indeed, the central government attaches great importance to cultivating new drivers of economic growth and provides strong support. I will provide a brief introduction from the following aspects:
One is to focus on supporting the high-quality development of the manufacturing industry. In order to vigorously promote the construction of a modern industrial system and accelerate the development of new quality productive forces, the central government has arranged special funds in the manufacturing industry to support the acceleration of the development of key technologies and industries, and to promote the leapfrog development of industries such as new generation information technology, high-end equipment, and new materials. In the near future, we will work with the Ministry of Industry and Information Technology and other departments to implement a new round of "specialized, refined, unique, and new" financial support policies for small and medium-sized enterprises, and cultivate more "supporting experts" in key links of the industrial chain; We will initiate the pilot work of implementing new technological transformation cities in the manufacturing industry, and allocate 3 billion yuan in 2024 to support the first batch of about 20 pilot cities in "smart transformation, digital transformation, and networking", and improve the high-end, intelligent, and green level of the manufacturing industry.
The second is to focus on promoting the development and growth of the digital economy. The central finance focuses on the key links of the digital economy and gives support, including supporting the construction of digital infrastructure, cultivating industrial Internet platforms, promoting the digital transformation of SMEs, and promoting the deep integration of the digital economy and the real economy. In the first quarter, the value-added growth rate of the information transmission, software, and information technology services industry reached 13.7%. In 2023, we will allocate 3 billion yuan to support 30 pilot cities in carrying out digital transformation pilot projects for small and medium-sized enterprises, and promote the resolution of the problems faced by small and medium-sized enterprises, such as being afraid, unwilling, and unable to transfer. An additional 3 billion yuan will be allocated this year to support the expansion of pilot programs. Next, we will work with relevant departments to initiate the digital transformation and upgrading of transportation infrastructure, support the digital transformation of a group of busy national highways, ordinary national highways, and high-grade waterways, promote intelligent expansion of transportation facilities, safety and efficiency improvement, and industrial integration.
Thirdly, we will focus on expanding and promoting domestic demand. Make good use of the combination of fiscal and tax policies to support the implementation of large-scale equipment upgrades and consumer goods trade ins. Centered around the direction of upgrading household consumption, we will coordinate existing and new policies, adhere to the linkage between central finance and local governments, actively promote the trade in of durable consumer goods such as automobiles and household appliances, and cultivate new consumption growth points; Support the implementation of county-level commercial construction actions, modern commercial circulation system construction, and improve the level of consumer service guarantee. In the near future, we will also work with relevant departments to initiate the implementation of county-level charging and swapping facilities to address shortcomings. This year, we will support around 70 pilot counties in 24 provinces to tap into the consumption potential of new energy vehicles in rural areas.
Fourthly, we will focus on promoting the improvement of infrastructure quality and efficiency. We will make good use of policy tools such as the issuance of additional treasury bond, special bonds of local governments, investment within the central budget, and vehicle purchase tax funds to promote the construction of key areas and major projects. For example, since 2022, a total of 13.7 billion yuan has been allocated to support the implementation of national comprehensive freight hub supply chain strengthening work in 25 cities across two batches, promoting the reduction of comprehensive logistics costs.
Next, we will work with relevant departments to support some large and medium-sized cities in implementing urban renewal actions, carrying out underground pipeline network renovation, etc. At the same time, we will also support a group of national comprehensive freight hub cities to strengthen their supply chains, further fill the gaps in infrastructure, and better leverage the driving effect of government investment. That's all I have to answer. Thank you.
Bloomberg News reporter: My question is, what is the reason for the slow issuance of local special bonds since the beginning of this year? When is it expected to start accelerating? Thank you.
Wang Jianfan: In order to implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, actively leverage the role of local government bonds, stimulate effective investment, and promote continuous improvement in economic operation, in December 2023, the Ministry of Finance fulfilled the approval procedures in accordance with the law and issued a partial quota for the newly added local government debt in 2024 to various regions in advance.
In 2024, the Ministry of Finance, together with relevant departments, will continuously optimize and adjust the investment areas of special bonds and the scope of project capital. More new energy, new infrastructure, and new industries will be included in the investment areas of special bonds, and "independent new energy storage" and "comprehensive treatment of water environment in key river basins" will be added to the support scope of special bonds. Local governments will be guided to increase their support for "national level industrial park infrastructure", "5G integrated application facilities", "urban village renovation", "affordable housing", "ordinary university student dormitories" and other areas, further planning major projects with obvious economic and social benefits, strong driving effects, public expectations, and to be completed sooner or later; Include "affordable housing" and other items in the scope of special bonds as project capital, further leveraging the leverage role of special bonds. At the same time, guide local governments to reserve special bond projects around the key investment areas determined by the Party Central Committee and the State Council, and strictly implement the list of prohibited special bond projects. Collaborating with relevant departments to arrange local submissions for the demand for new special bond projects in 2024, the Ministry of Finance is currently strengthening the review and control of projects in terms of project maturity, financing income balance, and compliance with fund utilization, in order to improve the quality of project reserves.
In the first quarter of 2024, various regions issued special bonds within the pre issued quota for new special debts, mainly used for the construction of key areas such as municipal construction and industrial park infrastructure, social undertakings, transportation infrastructure, and affordable housing projects determined by the Party Central Committee and the State Council. Special bond funds played a positive role in strengthening the foundation, filling gaps, benefiting people's livelihoods, and expanding investment. The issuance scale in the first quarter was smaller than in previous years. On the one hand, in response to special factors such as the impact of the epidemic, the issuance scale at the beginning of the year was increased in previous years. On the other hand, it was also related to local project construction funding needs, winter and spring construction conditions, bond market interest rates, and other factors. At the same time, we have also done a lot of work to improve the quality of special bond projects and strengthen pre project preparation. Overall, the issuance scale for the whole year is still in line with expectations.
Next, the Ministry of Finance will work with relevant departments to guide local governments to reasonably grasp the pace of special bond issuance, optimize the pace and intensity of government investment, guide and guarantee the funding needs of major projects, improve the performance of bond fund utilization, give full play to the driving and amplifying effect of government investment, consolidate and enhance the positive trend of economic recovery, and continue to promote the effective improvement of quality and reasonable growth of quantity in the economy. Thank you.
Guangming Daily reporter: Currently, spring plowing and spring sowing have entered a critical period. How has the central government supported spring plowing and preparation since the beginning of this year? What new measures are there? Thank you.
Wang Dongwei: Thank you for your question. I will answer this question. The plan for a year lies in spring, and spring plowing production is of great significance for stabilizing agriculture, especially grain production throughout the year. The central government has strengthened its funding policy guarantee, and this year, funds related to agricultural production have been issued to support the achievement of a successful start to agricultural production throughout the year. Here are a few points to share with you:
Firstly, we should focus on making multidimensional efforts on the land and support the consolidation of the foundation of grain production. There are three main measures: first, increase capital investment. We will guide local governments to make good use of the 224.9 billion yuan of additional treasury bond issued by the end of 2023 to promote high-quality and efficient projects such as the construction of high standard farmland and the transformation and upgrading of irrigation areas. This year, we will continue to provide support through transfer payments to build modern and high-quality farmland suitable for farming, ensuring income through drought and flood, and ensuring high and stable yields. The second is to increase the subsidy standards. Increase the per mu subsidy standard for the construction of high standard farmland from 1300 yuan to 2400 yuan per mu by the central government, and at the same time cancel the funding support requirements for grain producing counties by local governments. The third is to expand the scope of support. Arrange 5.2 billion yuan to expand the implementation area of conservation tillage in black soil to 100 million acres. Arrange 4 billion yuan to expand the pilot program for comprehensive utilization of saline alkali land from 2 provinces to 12 provinces, adhere to the combination of "planting according to land" and "planting according to land", and expand agricultural production space.
Secondly, we should focus on making multiple efforts in technology to support cost saving and efficiency improvement in agricultural production. There are also three main points: first, to support the large-scale increase in grain and oil production per unit area. Arrange 4 billion yuan to support the implementation of the action to increase the yield of grain and oil large-scale planting entities, and promote the application of high-yield technologies such as dense planting and precision sowing. 3.4 billion yuan will be allocated to support the implementation of green, high-yield, and efficient actions for key crops such as grain and oil, and to accelerate the integration of good fields, varieties, opportunities, methods, and systems. The second is to support the revitalization of the seed industry. An allocation of 11 billion yuan will be made to continuously support the key core technology research and development of key varieties such as corn and soybeans, carry out integrated pilot projects for major variety research and development, and implement policies such as county rewards for seed production. The third is to support the promotion and application of agricultural equipment. This year, 24.6 billion yuan will be allocated to support subsidies for the purchase and application of agricultural machinery, and efforts will be made to implement scrapping and updating of agricultural machinery. Just now we talked about a new round of large-scale equipment exchange, and the scrapping and updating of agricultural machinery is also one of them.
Thirdly, we should focus on providing more support in the service sector and support the improvement of the agricultural service system. Mainly including: firstly, increasing support for socialized services. Arrange 8.8 billion yuan to support various regions in carrying out agricultural socialized services, and help solve the problem of "who will cultivate land". The second is to strengthen the foundation of agricultural talents. Arrange 5.8 billion yuan to support the implementation of the National Shennong Talent Plan, the "Head Goose" Plan, and the cultivation of high-quality farmers, and accelerate the construction of an agricultural talent team that is suitable for agricultural development. The third is to strengthen agricultural credit guarantee services. Arrange 4.2 billion yuan of bonus funds to support the national agricultural credit guarantee system in innovating and improving guarantee products around grain production, processing, and circulation. As of the end of March, there were 1.13 million projects under insurance, with a balance of 398 billion yuan under insurance.
Fourthly, we should focus on comprehensive efforts in "policies" and improve the mechanism for ensuring the benefits of grain cultivation. There are four points: first, to ensure the income of grain farmers. Arrange 185.2 billion yuan to continue implementing farmland fertility protection subsidies, corn and soybean producer subsidies, and rice subsidies, and raise the minimum purchase price of wheat and early indica rice. Implement the incentive policy for domestic soybean crushing and processing, and stabilize the expectation of soybean cultivation. The second is to strengthen support for the main grain producing areas. The reward funds for major grain producing counties have been allocated 57.1 billion yuan this year, achieving a "nineteen consecutive increases". Arrange agricultural insurance premium subsidies of 56.2 billion yuan, and fully implement insurance policies for the full cost and planting income of the three major grain crops. Thirdly, we will fully support agricultural disaster prevention, reduction, and relief. During agricultural spring plowing, it is very important to carry out "one spray and three prevention" for wheat. We have allocated 1.6 billion yuan in advance to do this work well. In the first quarter, more than 1 billion yuan was allocated to support the response to the impact of rain, snow, freezing, and drought. Strengthen the analysis of crop pest and disease trends, and relevant prevention and control funds will also be issued in the near future. The fourth is to improve the diversified investment mechanism, leverage the leverage of fiscal funds, innovate investment methods, link with financial policies, and leverage policy synergies.
That's all I have to answer, thank you.
Shenzhen TV Direct News Reporter: The scale of government procurement in China is enormous, which plays an important guiding and promoting role in economic and social development. May I ask if there are any new measures for government procurement to promote innovation and establish a modern industrial system in the next step? Thank you.
Li Xianzhong: Thank you for your question. In recent years, the Ministry of Finance has actively played the role of government procurement in supporting technological innovation, green environmental protection, small and medium-sized enterprises, and rural revitalization, helping to promote high-quality economic and social development. Next, the Ministry of Finance will, in accordance with the decisions and deployments of the Party Central Committee and the State Council, continuously establish and improve a government procurement policy system that complies with international rules, focusing on supporting the development of new quality productive forces and building a modern industrial system. This year, we will focus on three main tasks:
One is to study and establish a collaborative and innovative government procurement system. Collaborative innovation procurement refers to the procurement of innovative products that do not currently exist in the market and require research and development. The procurement unit intervenes in advance from the research and development stage, first purchasing research and development services, and then purchasing research and development products. We summarize the characteristics of this new procurement method as "two gives, two shares": compensating suppliers for their research and development costs, and "giving orders" by promising to purchase a certain amount of innovative products. By "sharing research and development risks" and "jointly exploring the initial market", we stimulate the innovation vitality of enterprises. This approach is conducive to promoting the integrated management of innovative products from demand, research and development to application promotion, and better supporting application technology innovation and technological achievement transformation. In the early stage, the Ministry of Finance studied and drafted the "Interim Measures for the Management of Collaborative and Innovative Procurement Methods in Government Procurement", and publicly solicited opinions from all parties. The conditions for promulgation are now met, and it is planned to be issued soon.
The second is to continue to improve the government's green procurement policy. In recent years, in order to promote the green transformation and upgrading of the construction industry, the Ministry of Finance, together with relevant departments, has formulated policies to support government procurement of green building materials and promote the improvement of building quality, and has carried out pilot projects in some places. On the basis of summarizing pilot experience this year, the scope of policy implementation will be expanded, and the number of pilot cities will be expanded from 48 to 100. The products covered by the government procurement demand standard for green building materials will be increased from 75 to 100, further increasing support for the promotion and application of green buildings and green building materials. At the same time, further deepen and expand government procurement support policies for other types of green products, strengthen policy measures for mandatory or priority procurement of eligible green products, and continue to play a demonstrative and leading role in government green procurement.
Thirdly, we will continue to promote the implementation of the policy of treating domestic and foreign enterprises equally in government procurement. Government procurement treats products and services produced and provided by domestic and foreign enterprises in China equally and equally, which is our consistent policy orientation. In 2021, the Ministry of Finance issued a notice on implementing equal treatment policies for domestic and foreign enterprises in government procurement activities, which was specifically reiterated and emphasized. Next, we will strengthen the daily supervision and management of purchasers and procurement agencies, focus on distinguishing between domestic and foreign enterprises, continue to carry out special cleanups, increase law enforcement efforts, and punish various illegal and irregular behaviors in accordance with the law. In addition, we will also draw on international practices to study and develop standards for government procurement of domestic products, in order to better ensure the implementation of policies that treat domestic and foreign enterprises equally in the field of government procurement. I will answer these questions. Thank you.
Economic Daily News: The government work report proposed that from this year on, it is planned to issue ultra long term special treasury bond for several consecutive years, which will be specifically used for the implementation of major national strategies and security capacity building in key areas. In 2024, it will first issue 1 trillion yuan. Excuse me, what work has the Ministry of Finance carried out in terms of ultra long term special treasury bond? What are the next steps to consider?
Wang Jianfan: Thank you for your question. The issuance of ultra long term special treasury bond is a major strategic deployment made by the CPC Central Committee and the State Council with a view to the overall strategic situation, which is of great significance to promoting the construction of a strong country and the rejuvenation of the nation. After the review and approval of the National People's Congress, the Ministry of Finance has incorporated the extra long term special treasury bond revenue and expenditure in 2024 into the 2024 budget. At the same time, we will solidly advance the preparatory work for ultra long term special treasury bond, and actively participate in the formulation of action plans to support the building of security capacity in major national strategies and key areas.
In the next step, the Ministry of Finance will continue to implement and work closely with relevant parties to do a good job in the work of ultra long term special treasury bond.
First, launch the issuance of ultra long term special treasury bond bonds in time according to the distribution of ultra long term special treasury bond. We will combine the bond market demand and the implementation cycle of the construction project corresponding to the super long term special treasury bond, scientifically design the duration of the issued varieties, and achieve a reasonable match with the project duration. At the same time, we will coordinate the issuance of general treasury bond and special treasury bond, reasonably arrange the issuance rhythm, and effectively guarantee the fund demand of special treasury bond projects.
The second is to strengthen the coordination of central and local funds, stock and incremental funds, and form a joint force with ultra long term special treasury bond funds to improve the overall efficiency of funds.
The third is to study and establish a regulatory mechanism in combination with the actual situation of ultra long term special treasury bond funds, strengthen the supervision of the whole process of fund allocation, distribution and use, and ensure standardized, safe and efficient use. Thank you.
Xie Yingjun: The last question.
Jimu News reporter: Macro data shows that the overall economy continued to rebound and improve in the first quarter of this year. May I ask, in what aspects will the active fiscal policy in the next stage focus on consolidating the positive momentum of the economy? Thank you.
Wang Dongwei: Thank you for your question. I will answer it. This year's Government Work Report clearly states that proactive fiscal policies should be moderately strengthened, improved in quality and efficiency. From the income and expenditure situation in the first quarter, it can be seen that fiscal policies have been put forward and their effectiveness is accelerating, providing strong support for the sustained recovery and improvement of the economy. Next, the Ministry of Finance will focus on six areas of sustained efforts:
One is to fully support industrial innovation led by technological innovation. Benchmarking national strategic needs, increasing investment in basic research, applied basic research, and cutting-edge research, promoting the acceleration of the implementation of a number of major national science and technology projects, supporting research on disruptive and cutting-edge technologies, and advancing key core technology breakthroughs. Implement structural tax reduction and fee reduction policies, focus on supporting technological innovation and manufacturing development, and coordinate the use of policy tools such as fiscal special funds and government investment funds to support the development and growth of strategic emerging industries and accelerate the transformation and upgrading of traditional industries.
The second is to focus on supporting the expansion of domestic demand. We will make good use of relevant treasury bond funds, special bonds of local governments, investment within the central budget and other policy tools to drive the expansion of effective social investment. At the same time, we will implement and improve financial and tax support policies, actively promote the trade in of durable consumer goods such as automobiles and household appliances, and promote the expansion of domestic consumption.
The third is to actively support the improvement and enhancement of people's well-being. In terms of education, the focus is on increasing investment in high school education and ensuring the funding needs of students. Promote the high-quality and balanced development of compulsory education, promote the popularization and inclusiveness of preschool education, and meet the standards of vocational school conditions. Promote the construction of Chinese characteristics, world-class universities, and advantageous disciplines. In terms of social security, we will increase subsidies for the basic pension insurance fund, promote the improvement of public health services, vigorously implement employment priority policies, and do a good job in assisting disadvantaged groups. In terms of environmental protection, we will continue to support the fight against pollution, and there are two very important points. Let me introduce them to you. Firstly, we will establish subsidies for the construction of the "Three North" project to support key projects in ecosystem restoration and governance; Another is to establish a special fund for the disposal of discarded electrical and electronic products to promote the comprehensive utilization of resources.
The fourth is to ensure food and energy security at a higher level. Further increase the incentive efforts for major grain producing counties, achieve a "nineteen consecutive increases" in funding scale, and more effectively mobilize the enthusiasm of the main production areas to focus on agriculture and grain production. At the same time, we will increase support for agricultural insurance premium subsidies and increase insurance coverage for bulk agricultural products. Actively support ensuring energy supply and stable prices, promoting the healthy and sustainable development of renewable energy, supporting and encouraging unconventional natural gas to increase production and quantity, and taking multiple measures to enhance energy security capabilities.
The fifth is to promote coordinated development between urban and rural areas. Implement and improve financial and tax policies, vigorously promote new urbanization, support local governments in promoting the urbanization of agricultural transfer population, promote the implementation of major regional strategies, and increase support for special areas such as revolutionary old areas, ethnic areas, and border areas.
Sixth, strengthen budget execution management and financial operation monitoring. Guide and supervise local and some departments to quickly refine and implement the allocated budget into specific projects, so that the effectiveness of policies can be released as soon as possible and the benefits of fund utilization can be fully realized. At the same time, we will strengthen the analysis and judgment of fiscal revenue and expenditure, strengthen the monitoring of the operation of the "three guarantees" at the grassroots level, resolutely implement the requirements of the Party and government organs for a tight lifestyle, strengthen budget execution constraints, and promote the safe and standardized use of fiscal funds.
While doing a good job in the six aspects mentioned above, it is also necessary to better coordinate development and security in accordance with the decisions and deployments of the Party Central Committee and the State Council, continue to promote the prevention and resolution of local government debt risks, accelerate the implementation of debt transformation plans, and promote the reform and transformation of local government financing platforms by classification.
That's all I have to answer for this question. Thank you.
Xie Yingjun: Thank you to all the publishers for their introductions, and thank you to all the journalist friends for their participation. That's all for today's press conference.