Finance Minister Lou Jiwei.
News for the 12 session of the national people's Congress meeting will be held on March 7 (Monday) at 9 o'clock in the Media Center function room at a press conference, invited the Assistant Finance Minister Lou Jiwei, Minister Xu Hongcai "fiscal and tax reforms" related question answered Chinese and foreign journalists ' questions. [2016-03-06 19:07]
Xinhua, the Chinese Government Web site reported news for the 12 session of the national people's Congress meeting, Deputy Director, host Qu Weiguo, the session begins. [2016-03-07 09:02]
Qu Weiguo: friends from the press, good morning, and welcome to the 12 session of the national people's Congress meeting press conference. The theme of the press conference are: the financial and fiscal reforms. Today we are pleased to invite to the Minister of finance Lou Jiwei, Xu Hongcai, Assistant Minister of finance, answer your questions around this theme. Now come to my question. [2016-03-07 09:03]
Lou: I would like to say a few words. 5th Prime Minister Li keqiang, on behalf of the State Council made a Government work report at the national people's Congress, together with the draft budget and budget, I brought a bunch of material, because I do not know what you have to ask, Assistant Foreign Minister also invited our Mr Xu Hongcai, everyone questions if you need to talk about details, Comrade macro please help me find it. You don't need to worry, everyone can see the details of the draft budget the budget, of course not by NPC delegations to discuss consideration passed amendments after publication. Is such a background, needless to say, answer the questions below. [2016-03-07 09:07]
Japan NHK TV reporters: in recent years, the Bank's bad loan ratio increased, reflecting the economic slowdown. With the promotion of structural reforms in the future, bad loan ratio will continue to increase. As a substantial shareholder in State banks, the Treasury about "concerns about the continued deterioration of the situation of State-owned banks"? [2016-03-07 09:09]
Lou Jiwei: it very testy, and asked such pointed questions. You've talked about three points, 1th is banks ' bad loan ratio rises. Indeed, it gently up. You talk about in the context of structural reform, bad loan rates may also rise, we can see that after the 2008 global financial crisis, had exposed the structural problems in each country, in dealing with these issues when the banks ' bad loan ratio rises were found. [2016-03-07 09:11]
Lou Jiwei: in many countries the issue is better addressed, address common principles are actually two aspects, market mechanisms on the one hand, all in accordance with the principles of contract, according to the rules of the market to deal with. The other hand, Government help, add some leverage to help those relatively strong focus on systemic financial institutions in particular, that they should not be serious problems. Certainly, we China of situation with 2008 yihou of crisis situation not as, 2008 crisis of when, some national put private bank temporary nationalization has, even put private ownership served for "day" of United States, are temporary put systemic of important financial institutions are nationalization has, take has extraordinary sex of some measures, makes these financial institutions play normal role, especially on entity economic continues to give support of situation Xia, don't produced balance sheet excessive deterioration, repair balance sheet, Adopt a temporary nationalization approach, such as making the system banks in the Federal Reserve under the protection of, certain measures are taken, who you said not worry? I mean, everyone is worried about. Fear not worried if Bank shareholders are not very large, because the important banks, their problems can pose a systemic risk. Our next step with the phase in which they are not the same, they are when dealing with the crisis, we are faced downward pressure, but is still in the high growth, conditions are not the same. [2016-03-07 09:14]
Lou Jiwei: it is not because large shareholders how to worry about. First of all, these large State-owned banks have been listed, you say I'm a shareholder, said accurate is not very accurate, not percent of shareholders, is the major shareholder. These banks are facing the open market, in the face of all shareholder requirements, the State-owned shareholder is no exception, market investors and shareholders to worry about, we are worried. If so these Bank strengthening has dial prepared, and reduction meter, and reduced profit, national financial as funded people and market other shareholders is as of, we on they appropriate of some help, also is not because next May will some industry policy in the, especially "three to", to capacity, and to inventory, and to lever of process in the, involved Bank of certainly on compared more some, is not because they is State-owned of or national holds of shares special big on special how treats, but said from overall consider. So from this perspective, my mind is still relatively calm. Thank you. [2016-03-07 09:18]
The economic daily, China economic net reporter: Minister of building, recent scholars worry that lower-than-expected fiscal reforms to promote speed, what do you think about this? In addition, what the next steps to be taken to improve the fiscal reforms, the floor rate? Thank you. [2016-03-07 09:19]
Lou Jiwei: 18 session with a chapter about fiscal reform, we worked very hard indeed, some did not meet, or a bit slower than the requirements of schedule due to the third plenary session. [2016-03-07 09:20]
Lou Jiwei: on the whole, we are to achieve progress, important reforms in several ways: on the one hand is budget reform. Whether budgeting and budget implementation Act on implementation of the budget of some basic criteria, such as the first budget after spending, budget adjustment procedures, the budget needs to be open to the kind of detail, straddling the balancing mechanisms, such as medium-term financial planning, as well as debt, especially in the local debt management, and so on, we all do. Some still did not fully meet expectations. This is the case, a conversion process, our concept also needs to be translated, and deepening of our reform has entered a crucial period and the Sham Shui Po District, old ideas, interest barrier is interference reform implementation obstacles. Indeed, the advancement of the reform needs top design firm, to crack a hard nut. Meanwhile, to enhance the coordination of all aspects, dealing with all aspects of the conflict. [2016-03-07 09:23]
Lou Jiwei: If the words do not reach the desired, overall reform of the tax system were a little slower than we had expected, referred to last year's Government work report and strive to complete the camp changed, and last year did not strive to. This year's Government work report, g strong Prime Minister has proclaimed May 1 full implementation of business changed, and gives us a timetable, there is no "to" two words, that is to say, it was encouragement. Last year about "strive", on May 1 this year under the military order have. Others may have, for example, to study the reform of Central and local powers and expenditure responsibilities, the so-called Division of powers and expenditure responsibilities, this is a big deal. In principle, should be made upon completion of the basic tax reform, as I have said, taxes increased camp changed must be completed this year. Local tax system is not established, real estate taxes and into our cooperating with authorities during the legislative stage, the personal income tax reform proposal. Some other local tax reform, some still in progress. Therefore, the Division of Central and local responsibilities and Division of expenditure responsibilities, such reform is a prerequisite. Again, this reform is actually said, the Treasury could do with some top design, but we must not forget that the finance is a basic and important pillar of governance, saying it involves governance, nor the Treasury Department a can solve, need everyone working together. [2016-03-07 09:29]
Lou: I'll give you an example, judicial reforms already in, for example, has set up two pilot Circuit Court of the Supreme Court. If divided from Central and local governments, increased powers of the Central Government, the Supreme Court circuit court is not a court, is the Court of Assizes, increases central powers. From another perspective, the powers and expenditure responsibilities of the reform, the basis of governance involved I just said, you need to push in every direction. [2016-03-07 09:30]
Lou Jiwei: the Government work report, keqiang also talked about environmental protection in the report of the Prime Minister, spoke of stronger food safety management, in fact, are already covered by the Central and local powers and expenditure responsibilities. I mean, this is a very big project, and was a top design, a process of cooperation and coordination in all aspects, and gradual process. Some more than 200 years of history, and gradually gradually rationalize the powers and expenditure responsibilities between the Central Government, these problems will not happen overnight. I also feel, to make it clear that this is a very complex process. [2016-03-07 09:32]
Xinhua: Premier Li keqiang proposed in this year's Government work report, a proactive fiscal policy to increase its efforts, proposed deficit of 2.18 trillion yuan, the deficit ratio increased to 3%, will the 2016 year active fiscal policy to adapt to the new normal, and promote the healthy and stable economic growth? In addition, the current fiscal contradictions are prominent, how to guarantee key expenditures? Thank you. [2016-03-07 09:36]
Lou Jiwei: Prime Minister Li keqiang said that budget also referred to in the report submitted by the State Council, this year's deficit is 3% than last year's actual deficit rate of 0.6%, last year's deficit was 2.4%. Total Central and local government deficits this year was 2.18 trillion. Increasing the deficit rate is in line with the request made by the central economic working conference last year, on the basis of a modest expansion of aggregate demand, focus on the supply side of structural reforms. We are now facing new normal economy, conflicts are highlighted in the new normal, including long-standing conflicts need to be resolved, under these circumstances, our budget is done according to the guidelines established by the increasing deficit, to support in the realization of a high speed economic growth and focus on structural reforms, which is an overall tone. [2016-03-07 09:38]
Lou Jiwei: it added a 0.6% deficit, what to do? First of all to guarantee key expenditures. Insurance focus spending, will optimization spending structure, according to can continued, and insurance basic of principles, arrangements good livelihood spending, strictly control for example "three public" funding of growth, even to pressure reduction, let more of spending guarantee basic public service and focus livelihood spending, but in this process in the, to on income high growth period spending standard high, and commitment too much of not continued of spending, or policy sex linked of spending, in reasonable assessment of based on, timely pressure reduction. Correspondingly increase the balance transfer payment expenditures, balance transfers are arranged by the local initiative. In the case of current adjustment, arranged to place more independent disposable financial resources is conducive to dealing with the complex and changing economic conditions. Meanwhile, in accordance with the goal of poverty eradication has increased the poverty-related expenditures, and poor areas of transfer payment. Central infrastructural expenditure, arranged 500 billion this year, and 500 billion adjustment to squeeze those small, scattered projects, focused on central authority, cross-domain, public welfare is strong, some of the major spending on infrastructure projects. [2016-03-07 09:44]
Lou Jiwei: in addition, the arrangements referred to in the report of the Prime Minister 100 billion special awards and subsidies, support to production spending on personnel in the process. Budget of 50 billion this year, and next year we plan to arrange the 50 billion. Certainly, according to work of situation progress, this digital are is can adjustment of, main is according to the place completed to capacity task of situation give support, main is with to capacity of scale linked, to consider to need placed of workers of number, local financial difficult of degree and so on, implemented gradient sex of award fill, responsibility in enterprise, and in place, Central give award fill, this is a focus. Of course, central to capacity, may also have personnel placement. On the, I on without more said has, due to implemented camp modified increased, camp modified increased process in the actual we is drop tax of, we intends prepared of programme is 17% of standard tax does not improve, but due to all of real estate can into arrived buckle has, no a place without real estate, road, and road on both sides of traffic engineering, and plant, are is real estate, these can arrived buckle has, actual tax base on narrowed has, on caused has reduced, regardless of is central financial also is place financial are to reduced, Not for increasing the standard rate under the present circumstances, therefore, a reduction in the. [2016-03-07 09:48]
Lou Jiwei: it also, to reduce some administrative fees are canceled, some of us said in a budget report is to bring the rate down to zero. Why references are not the same? Rates below zero these items is levied based on the supported by the upper law, it cannot be canceled, reduced to zero. I will not specifically what are, this is the second reduction. [2016-03-07 09:50]
Lou Jiwei: third reduction, expanded the other preferential policies, such as small business, continues to extend preferential policies, on the whole, to achieve the reduction and reduce burden on individuals and businesses to be 500 billion to the taxpayers, these caused propped up some of the deficit. Spending adjustments, income is reduced, don't arrive through the deficit made up. [2016-03-07 09:54]
Lou Jiwei: also, we should strengthen coordination, according to the requirements of the new budget law, departments for more than two years carried forward cannot be carried forward, and budgetary arrangements should be spending fall, if said several factors that haven't finished spending for the second year, may be carried forward may not be carried over in the third year, will have to get a budget plan arrangements, and manpower. Balance funds in previous years or more in some places, asking them to speed up, this is how to make expenditures, focus, and so on. [2016-03-07 09:55]
Lou Jiwei: it mentioned the expanding deficit, expenditures, income adjustment in the adjustment process in the process in support of structural reform, I say tax cuts for some time, supporting structural reforms. Said to the capacity, in the appropriate financial arrangement and support to personnel problems in the production process which also supports structural reforms. Of course, there is complementarity, spoke about poverty alleviation, spending in other areas, is also make boards, this year's budget. [2016-03-07 09:56]
Reporter: I saw some figures in the budget, do calculations, 2016 General allowance is 10.7 trillion debt balances, special 6.48 trillion, I remember that by 2015 this figure is 16 trillion, down to new line's 1.18 trillion, this figure is our NPC for consideration of new debt balance is so much? Almost larger than 600 billion last year, should have been 1 time, SP-I do not know me. We know that this deficit is above 3, there is the added debt servicing and replacement of "double l" will increase our financial risk, also widen the deficit and expand the debt in the future how big is space? How do risk control? [2016-03-07 10:00]
Lou Jiwei: thank you, you read very carefully, I have checked out, so it could have happened, you account right, because the deficit has increased by 280 billion, and where special debt increase, balance 16 trillion at the end of last year, adding up is your number. [2016-03-07 10:01]
Your question is about how to strengthen the management, how big is the space. This space is difficult to tell, because of debt and deficit together, General is issuing bonds to make up for the deficit, debt and deficit space are linked together. Second, how do we manage these risks, for a time, a decline in our revenue potential growth trend. A few years ago we all ask, 10% economic growth, financial growth 20%, now to answer, that is 6.5% per cent of the growth, why revenue growth lagged behind the economic growth. Not the same. More importantly, the PPI decline in a row, saw revenue rise of space compressed. So if we have no deficit of space? No, the key to deficit-what is whether deficits will decrease in the future, will come back to? Compared to other countries, temporary deficits rise, such as the United States once after the 2008, 2009, 2010, when the highest is 7.9% deficit, two years back in the 4%. After watching moderately supportive fiscal policy, the resilience of the economy, deficits or debt could rise, how much space, this is hard to answer simple questions. [2016-03-07 10:08] Clearing the largest parallel import car pilot
Lou: I said that our revenue situation is grim, and we want to expand some of the deficit, and the second, the space it's hard to tell how much of the deficit is appropriate. We have some space, but it cannot grow very much, because the proportion of our revenues per cent of GDP is only 30%, lower than average proportion of countries, far below the proportion in developed countries. Therefore, the deficit may be appropriately increased. [2016-03-07 10:10]
Lou Jiwei: another debt space, our government debt as a share of GDP around 40%, which is relatively low in comparable countries. In this regard, we have a certain amount of space. It is important, we have to space use that debt, especially to support the supply side of the structural reform in the future, the dynamism of the economy on the rise, makes the structure of the economy in the high-end and endogenous drivers of economic growth, this space can be very well used. No space deficit, is important on capital expenditure, public spending in General, that there will be a big problem, but fortunately we kept "golden rule" is a debt-for-asset, we left a lot of good assets, this is where we feel at the end, in the "meal". "Dinner," borrowing money can't, "dinner" to rely on wages, borrowed money can buy a House and also it with future income, mortgages can be, we're keeping the bottom line of this risk. [2016-03-07 10:15]
Again, how do we prevent the local government debt risks, central government debt no problem, the key is in the budget law, local governments will set out new debt cut, as debt risk can break through, together with the financial management at all levels in this regard, I believe that we will achieve results. [2016-03-07 10:17]
River, River client Reporter: Minister of building, Hi, don't know if you feel the years housing prices have been rising, but after a raised tax threshold from 2011 there would be no change, did you say a tax reform package being put forward, do not know if there are any specific timetables? Also, if you implemented a tax collection and payment of the family unit would give workers more access? Thank you. [2016-03-07 10:18]
Lou: we have to raise payroll taxes deducted from cost of standards. Said starting point, precisely, is the fee is deducted from salaries, sounds uncomfortable, because until now, we and the vast majority of countries are not the same, we introduced a collection of personal income tax, just have a basic cost of salaries deduction standard. Comprehensive income should be made, but not the costs for salaries, are the less the standard. That presents a problem, do you want another starting point? I remember I last year on answered had, simple to improve up levy points is not fair of, a a people of wage 5,000 block money can had days had have good, if also to raised children, even also to has a need maintenance of elderly, on very constraints, so unified there standard itself on not fair, in working proceeds items Xia continued improve there standard on not a direction. [2016-03-07 10:23]
Lou Jiwei: plenary session presented progressively established comprehensive classifications with a combination of personal income tax system, it's complicated, last year the Ministry of finance and the State administration of taxation, and other relevant departments, into personal income tax reform in consultation with the important and difficult issues involved, formed a reform programme. Practice is to step in place, because comprehensive income tax, we always wanted to do for so many years, why not do it? It is complicated, to personal income, now 11 integrated together, then do a payroll under deductions is not simple, but to classify some of the deductions. Deduction of personal career development, further education, for example, such as basic life of a residential mortgage loan interest deduction, raising a child, for example, at what stage are compulsory, or high school, or college stage, to give the deduction. Of course we now release "second child", and standard in big cities and small cities, really what is the cost of how many, are not the same. Tax law cannot be described more in big cities, small cities less, always have a unified standard. Also supporting the old, which are more complex, and requires sound personal income and property information system, need to amend related laws accordingly. We of programme has submitted State has, according to national NPC legislation of planning and State of requirements, this year will put integrated and classification phase combined of personal income tax method of draft submitted national NPC to considered, then, I just said complex, complex in implementation, first tax political on compared complex, then again implementation, then again according to conditions points step implementation, first do some compared simple of part, again with information system, and collection conditions and everyone habits of established, gradually put it perfect of. [2016-03-07 10:28]
Taiwan's economic daily Reporter: you mentioned before the labor contract law the protection of enterprise are insufficient and excessive wage increases could affect corporate investment, which many Taiwanese companies always reflects the problems the past few years. Some of the labor contract law has been advanced, there are no amendments may be, should be, how to fix? In wage growth and how to strike a balance between the reasonable burden on enterprises? Thank you. [2016-03-07 10:29]
Lou Jiwei: the problem of the labor contract law, I am in two academic activities, the academic point of view. Once in Tsinghua University, one in 50 people Forum, said the labor contract law related issues. In Enterprise aspects and employees aspects, protection of degree is not balance of, it by building of labor of basic mode, is those standard work of mode, also not too for Yu flexible labor of mode, for on-the-job of workers protection compared more, actual for new into vocational of people, especially low skills of manual who of actual employment is with discrimination of, I had do had analysis, a is no incentive to improve workers of high skills, because enterprise if increased has enterprise training, improve skills, Workers can advance a month could leave without saying why, why spend money to improve your skills? Senior technician is most acute in the current, and the labor contract law is concerned. A worker if you don't work hard, companies find it difficult to deal with him for, such as dismissal, then position a, new forms of discrimination. [2016-03-07 10:34]
Lou Jiwei: as mentioned, is based on standard work hours, not suitable for flexible employment, export-oriented processing trade enterprises, there are orders in time, workers brought, on temporary contracts, do not order you to do something. Enterprise is a flexible employment. But we are the standard working hour system as the Foundation of the labor contract law, makes these companies very difficult, many who had jobs to do? Low-skilled workers job opportunities are few. From industry, could rise because of the cost to other countries. So ultimately is who? Damage of workers, reduced employment opportunities. Intended to protect workers, but could ultimately harm the interests of some workers, can also lead to excessive pay increases. Labor productivity of the pay rises are more than a few years, this is not sustainable for a long time. There are various reasons, cannot be said to have no relationship with the labor contract law. [2016-03-07 10:40]
Lou Jiwei: it would amend the law, how to fix it, is a comprehensive macro-sector, sector of the Ministry, see these questions to point out that, because of the impact on the overall economy, financial expenses and income are affected, we need to make a correction. Dharma is not the Ministry of finance, and ahead of time that my academic activities in the community, for everyone here today to answer the question, is Minister of identity, since you have asked, I have answers for you. [2016-03-07 10:41]
CCTV, and CCTV and CCTV news client Reporter: floor Minister Hello, just you also mentioned has last year camp modified increased and no according to plans as scheduled completed, I remember last year in here of when you also had mentioned had real estate industry, and construction, and finance, and life services of camp modified increased is let you most nerve-racking of thing, I wants to asked of is camp modified increased no smooth launched, is because encountered has is big of resistance, reform breakthrough of difficulties in what place? So far, some industries have appeared in the camps increased after the implementation of the modified tax burden increased rather than decreased, how to ensure the realization of the Government work report referred to in commitment to tax reduction does not increase? And you also mentioned a moment ago, the battalion to increase will bring a reduction, then Central how to make local governments reduce? [2016-03-07 10:51]
Lou Jiwei: a question for you, actually has a lot of things too much, I'll try to answer them. First of all, last year the Prime Minister's task is "to finish", this is a military order to be completed. Last year why not "strive to" come down? One is too complicated, another is last year's revenue situation is not so good. Increased camp changed history, I no longer recall, but said that the construction, real estate, finance and service industries which packages you want to include business tax reform value added tax, is a most difficult problem, why difficult? Because of the crowd. Service industries alone accounted for head, these four industries accounted for roughly 9.6 million households, because life is very much in services, and the corresponding part of the original tax was 1.9 trillion, accounted for the business tax amounted to about 80%. But why do I have to do? Sales tax is a levy amount according to each company's turnover, turnover tax, is hampered the company optimized its business model, for example, sales a certain independence, independence of r, independence creates a new volume of turnover would then levy a tax. [2016-03-07 10:59]
Lou Jiwei: it so to get through the credit chain, makes it really a value added tax, in every aspect of value added tax, must continue in this direction. So this is an overriding task. After doing so, very beneficial to the development of support services and the transformation and upgrading of the manufacturing industry. Especially productive services, such as logistics, such as research and development, services for the manufacturing industry, for example, insurance and so on. They are after the introduction of value added tax, reduction or elimination of the duplication of taxes, is very good for the upgrading of manufacturing industry. This done, we put these all away, implemented a complete set of consumption-type value-added tax. Especially in the present, into tax deductible real estate chain, we have parts into the device, which is conducive to business investment, part of investment are tax deductible, as a tax credit, under the present circumstances, we have to encourage investment, in particular by encouraging investment in high quality, independent investment and quality investments are tax deductible. But it's complicated, last year although there is no "to" come out, but we carefully research and demonstration of the relevant programme, and heard the views of typical enterprise sector, relevant associations and proposed reform programme. Tax design must be simple, you have to consider the tax burden of enterprises, also to take into consideration the financial capacity, so the design is more complex. [2016-03-07 11:12]
Lou Jiwei: you mentioned that the enterprise does not increase, we can do without. Real estate can arrived buckle, enterprise rent to of property, and investment formed of real estate can arrived buckle, but past past some real estate also cannot arrived, has a digest process, new investment of part can arrived, past of part cannot arrived, these I'm afraid in began stage may has tax of changes, then gradually of Digest off has, encourages you investment well, are can arrived tax, even investment volume big of when, may a two years can not tax of, are arrived buckle has. But cannot guarantee that every enterprise in the battalion change increased when the last link is not increased. [2016-03-07 11:13]
Lou: I just have a problem when it comes to local business-change will cause increase revenue, how to solve it. I said, camp changed after increased, both the Central and local revenues to reduce, is not reduced, the Government as a whole to the corporate tax reduction, Central and local governments have to reduce. We considered was to maintain the current Central and local total financial resource distribution under the same circumstances, arranged a transitional Central and local revenues are divided into approaches to solve the problem of local revenues. Why do I say that local revenue to solve it? To be clear, first of all, both the Central and local revenues have to be reduced. Second, where this block is the business tax, sales tax is a local tax, tax reduction, turn into sales tax, value added tax is central and local tax share, so in this sense, both the Central and local reduction, reduction of, so to say that this part of the solution, there must be a transitional solution to the problem. [2016-03-07 11:16]
Chengdu business daily Reporter: I found that "Thirteen-Five" refers to the exploring of draft planning framework for long-term-care insurance, long term care insurance pilot, my question is, does this mean that the "five social insurance and one housing fund" that you want to make an insurance policy? How to support? Thank you. [2016-03-07 11:16]
Lou Jiwei: explore different ways to solve this problem, first of all, it's not just a place to live, and with a certain amount of medical resources. Way out, now some exploring around, for example through the purchase of services to address some, some Government organized, is facing the elderly people, and disability, must be provided with medical care. In some places there is no health insurance through medical and we encouraged him to get through a medical and health-care, from States and individuals, it's good, some disabled old people, if the family does not do so, into the community or centralized pension, medical care, than from States and individuals in hospitals was cost, which is a centralized. Second is a community, and communities some of the wards, to arrange a certain amount of care, and home, through various contacts, what care is required, the system we're talking about is in the form of home-oriented, and community, and focus, this is the first system is like. [2016-03-07 11:17]
Lou Jiwei: sources said the personal burden, there must be some sourcing, there is some support, and now Medicare got through. As to whether there is a new kind of insurance, don't know if NHK reporter knows, Japan has this kind of insurance, make elderly care insurance after the age of 40, after the disability in the elderly, through the risk to resolve domestic, community and disability-elderly care focused arrangements. So far, we have yet to consider increasing the risk, "Thirteen-Five" says is the study of how to do it. [2016-03-07 11:18]
Bloomberg News reporter: I would like to ask a question about the debt. In January this year, an investment bank to make such a point of view, is that, historically, those countries with heavy debt burdens have experienced economic crisis and economic slowdown, what do you think about this argument? What measures exist to prevent the emergence of this phenomenon? Thank you. [2016-03-07 11:18]
Lou Jiwei: it does have this phenomenon, but we cannot make generalizations. States are not the same, such as the United States, a lot debt rate is now higher than in 2008, but its economic recovery. Some countries debt ratios are very high, but the continued austerity, has not come out. So is not good to generalize. But the debt is too high, downward pressure on the economy is indeed bigger, that's true. [2016-03-07 11:19]
Lou Jiwei: government debt is, as I said, it is not very high, about 40%, especially the Central and only about 11 trillion GDP, and we are very low, there is room for continued issuing bonds in the central budget. We want to control the problem of irregular, if debt is dominant, are included in the budget law to manage, rather than disguised debt, we are not too worried about it. Now is doing this it is what it is, local debt balance is approved by the national people's Congress last year 16 trillion, 16 trillion in the stock of debt is 15.4 trillion by the end of 2014, the stock has more than 1 trillion bond that was approved by the national people's Congress, the rest is regular debt. We approved last year, ordered all local 3.2 trillion stock replacement bond debt due this year, according to statistics of local debt there are about 5 trillion, continues to allow local bond issue replacement debt due, I'm afraid to do something next year, basically we'll debt replacement expires. Thereafter has expired, because it is a balance of the debt, under this balance, the place can be new or old, so it is not a big problem. Big problem is the two bears direct responsibility for the debt was $ 16 trillion, but those contingent liabilities, in times of economic slowdown, local government compensation ratio may expand this to control. Local financing platforms still exist, because only part of the debt is due, there is no other debt due, debt is still out there. Where financing is contingent liabilities incurred on the platform, so what do I do that? Continue to let them inject assets or liquidate assets and debt sustainability. [2016-03-07 11:31]
Lou Jiwei: it is to prevent the use of a variety of debt means we focus on PPP projects, we want it to standard, PPP projects we also found that in some places, is Government cooperation with the social capital project, some form of borrowing, we regulate it. In this case, if the risk control of debt, will not cause great economic harm. In the present case, to production, to inventory, to leverage, reducing leverage of the whole society, Government to moderate and the lever, to support the society drop lever. Increase the deficit is the Government lift the lever. There are levers of government appropriate to expand measures, it is necessary, as long as the lever gradually down from the whole society, the Government has gradually release the lever. I cited the United States example of United States Government leveraged, but the economic recovery. But now the United States trouble is this, such a high leverage rate goes up, down, is also a problem, so, for a period of time in the community to leverage when Government moderate increase leverage, we promote reform, economy to a better State, when we think about what levers the Government, it is a substituted process, and policy must take into account. [2016-03-07 11:32]
Xinhua, the Chinese Government Web site reported: this live is over, thank you for your attention! [2016-03-07 11:33]
Qu Weiguo: because of the time, the press conference is over, thank you, thank you reporters. [2016-03-07 11:32]
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