In the fourth quarter of 2023, the central government will issue an additional 1 trillion yuan of national debt to focus on supporting post disaster recovery and reconstruction and making up for the shortcomings in disaster prevention, mitigation and relief. At present, how about the use, distribution and distribution of relevant treasury bond funds? How can the financial department strengthen supervision over this fund?
Wang Dongwei, Vice Minister of the Ministry of Finance, said that in the first quarter of this year, financial departments at all levels accelerated the allocation of budgets and the use of additional treasury bonds, strengthened major national strategic tasks and financial security for basic people's livelihood, and all additional treasury bonds were allocated at the beginning of the year. In the fourth quarter of 2023, the additional 1 trillion yuan of treasury bonds will be mostly used this year.
Looking at the issuance of national debt - After the Standing Committee of the National People's Congress reviewed and approved the plan for additional issuance of national debt, the Ministry of Finance adjusted the plan for the issuance of national debt in the fourth quarter of last year in a timely manner, optimized the issuance window and maturity variety structure of national debt, mobilized the members of the bond underwriting syndicate to prepare for debt, guaranteed the smooth issuance of additional national debt, and raised funds in full. With the cooperation of all parties concerned, the issuance of 1 trillion yuan of national debt has been successfully completed by the end of 2023.
According to the distribution, the National Development and Reform Commission, the Ministry of Finance and other departments have established a special working mechanism to timely organize the declaration and review of national debt projects. According to the list of projects determined by the special working mechanism, the Ministry of Finance in February this year has released all the 1 trillion yuan of additional treasury bond funds to local governments in advance, and urged and guided local governments to implement specific units and projects in a timely manner, accelerate the arrangement and use of projects according to the project construction progress, and form real workload as soon as possible.
In terms of fund allocation, the Ministry of Finance has established a separate allocation mechanism for treasury funds for additional issuance of treasury bonds. In December last year, 500 billion yuan was allocated to local treasury funds in two batches, and in January and February this year, another 500 billion yuan was allocated to local treasury funds in three batches. "The two 500 billion yuan have been allocated to local governments to ensure that the progress of project construction will not be affected by the funds," said Wang Jianfan, director of the budget department of the Ministry of Finance.
Looking at the fund supervision work - The Ministry of Finance has formulated the Administrative Measures for the Additional Issuance of National Debt Funds in 2023 to standardize the allocation and use of national debt funds, improve the integrated budget management system, and supervise the entire process of additional issuance of national debt project funds. "The Ministry of Finance will actively play its functional role, guide local governments to accelerate the implementation of projects, do a good job in supervising the issuance of additional treasury bonds, and ensure that funds are used in the cutting edge," Wang Jianfan said.
"From the data of the first quarter, the expenditure on urban and rural communities, agriculture, forestry and water, disaster prevention and emergency management, which is the focus of additional treasury bond funds, increased by 12.1%, 13.1% and 53.4% year on year, respectively, achieving double-digit growth." Wang Dongwei introduced that the central government increased capital investment this year, We will guide local governments to use 224.9 billion yuan of additional treasury bonds issued by the end of 2023 to promote projects such as the construction of high standard farmland and the transformation and upgrading of irrigation areas. The central government will also continue to consolidate the foundation of grain production through transfer payments, and build modern fertile fields that are suitable for farming, drought and waterlogging, and high and stable yields. "The average subsidy per mu for the construction of high standard farmland from the central finance will be increased from 1300 yuan to 2400 yuan, and the local requirements for supporting funds for large grain producing counties will be canceled; 5.2 billion yuan will be arranged to expand the implementation area of black land conservation tillage to 100 million mu; 4 billion yuan will be arranged to expand the pilot project of comprehensive utilization of saline alkali land from two provinces to 12 provinces." Wang Dongwei said.
In terms of issuing extra long term special treasury bonds, Wang Jianfan said that the Ministry of Finance has incorporated the revenue and expenditure of extra long term special treasury bonds in 2024 into the 2024 budget, and has solidly promoted the preparatory work for extra long term special treasury bonds.
"We will combine the demand of the bond market and the implementation cycle of the construction project corresponding to the ultra long term special national debt, scientifically design the duration of the issuance varieties, and achieve a reasonable match with the project duration. At the same time, we will coordinate the issuance of general national debt and special national debt, reasonably arrange the issuance rhythm, and effectively guarantee the fund demand of special national debt projects." Wang Jianfan said, The Ministry of Finance will strengthen the overall planning 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.
