Fiscal and monetary policies will create a more relaxed economic environment. After more than 30 years of reform and development, China's economic growth mechanism has undergone major changes, that is, economic growth has changed from supply-oriented to demand-oriented constraints. Insufficient demand has become the main contradiction in the current economic operation, and it is also the fundamental reason for the increasing downward pressure on the economy. Focusing on solving this contradiction, the report proposes to strengthen the proactive fiscal policy to improve efficiency, and deficit ratio has increased from 2. 1% last year to 2.3%. The prudent monetary policy should be moderate, and the broad money M2 is expected to increase by about 12%. In actual implementation, it can be slightly higher according to the needs of economic development. The implementation of these policies and measures will play a vital role in alleviating the contradiction of insufficient effective demand. In macroeconomic management, the main function of monetary policy is to adjust the total demand and keep it in general balance with the total supply, thus maintaining price and economic stability. The main function of fiscal policy is to optimize the structure. Due to the long-term imbalance between investment and consumption, China has the problems of insufficient demand and overcapacity. The ex-factory price index of industrial producers in China has been negative for more than three consecutive years, and the consumer price index has dropped to 1.4% in February this year. The deployment of fiscal and monetary policies in the report is highly targeted to prevent deflation and create a more relaxed economic environment.
Financial reforms such as relaxing access will reduce the financing cost of enterprises. The high interest rate of enterprise loans and the difficulty of financing for small and medium-sized enterprises are long-standing problems. According to the spirit of the Third Plenary Session of the 18th CPC Central Committee, the report proposed "promoting financial reform around serving the real economy". Promote qualified private capital to initiate the establishment of small and medium-sized banks and other financial institutions in accordance with the law, mature one, approve one, and set no restrictions. "Relaxing financial access is a major breakthrough in the reform of the financial system, which not only brings new development opportunities for enterprises, but also reduces the interest rate of corporate loans by strengthening competition, effectively solving the problem of financing difficulties and expensive financing for SMEs. For a long time, the financial system reform lags behind and the direct financing market is underdeveloped, which leads to high debt ratio and poor liquidity of enterprises, and some promising projects and enterprises can not get financial support. The report proposes to promote the marketization of interest rates, implement the reform of the stock issuance registration system, develop the regional equity market serving small and medium-sized enterprises, promote the securitization of credit assets, expand the scale of corporate bond issuance, and develop the financial derivatives market. The implementation of this series of reform measures will promote the market to play a decisive role in the allocation of resources, significantly improve the financing environment of enterprises, improve the efficiency of capital use, and then stimulate economic vitality.
The reform of investment system will create more investment opportunities for enterprises. At present, there is a shortage of public goods and services in China, especially the infrastructure and public services in the central and western regions and rural areas are backward, which cannot meet the needs of the people. Guiding social funds to invest in these fields can not only eliminate the bottleneck of economic and social development, but also stimulate investment demand and play an important role in steady growth. The report proposes to actively promote the cooperation mode of government and social capital in infrastructure, public utilities and other fields. For some infrastructure and public service projects that are urgently needed by the society but the government lacks construction funds, such as railways, highways, water supply, power supply, hospitals, schools, nursing homes, kindergartens, parking lots, charging piles, etc. Franchising can be adopted, and the government can formulate policies to get a reasonable return on investment, and select qualified enterprises to undertake investment and construction tasks through bidding. Replacing the government financing platform and land finance in this way can do many things that the government wants to do but can't, and at the same time, it can find many new investment opportunities for private capital. Significantly narrowing the scope of investment projects approved by the government, decentralizing the approval authority and greatly reducing the pre-approval of investment projects will effectively mobilize the enthusiasm of social investment.
Make good use of the new opportunities of agricultural modernization and new urbanization
Promoting agricultural modernization will further release the potential of rural labor force. Judging from the reform process of more than 30 years, almost every great economic development comes from a new breakthrough in rural reform. At present, we are in the stage of climbing from middle and high income countries to high income countries. Without a substantial increase in agricultural labor productivity and farmers' income, and without agricultural modernization, it will be difficult to expand domestic demand and enter the ranks of high-income countries. It is timely to focus on rural reform again and release the potential of rural development. China's small-scale agricultural operation and low agricultural labor productivity are the fundamental reasons for the large income gap between urban and rural residents. Accelerating the modernization, scale and intensification of agriculture, liberating the surplus labor force from the land and transferring it to the secondary and tertiary industries, and attracting high-quality labor force into modern agriculture are the only ways to improve agricultural labor productivity. After more than 30 years of reform and opening up, the conditions for accelerating agricultural modernization have basically been met, and this historical process should be promoted without losing time. The report puts forward many policies and measures to support agricultural development, which provides a rare opportunity for social funds to invest in agricultural modernization. In recent years, some migrant workers have returned to their hometowns to start businesses, and some industrial and commercial enterprises have invested in agriculture, which has achieved results and should continue to be encouraged and supported. Reform is the key to promote agricultural modernization. On the basis of stabilizing family business, we will support the development of new business entities such as large-scale breeding households, family farms, farmers' cooperatives and industrialized leading enterprises, cultivate new professional farmers, and promote various forms of moderate scale operations.
Promoting new urbanization will release the huge demand potential of the newly-increased urban population. According to the registered population, China's urbanization rate is only over 30%, and there are still 270 million migrant workers and 4160 thousand people who have not really settled in cities and towns. Creating conditions for migrant workers to become citizens, allowing them and their families to live in cities, go to school and provide for the elderly, and enjoy basic public services like city people, is the difficulty of urbanization. The "Report" did not evade these contradictions, and proposed to solve the difficult problems by means of reform, such as stepping up the reform of the household registration system and relaxing the household registration policy; For the floating population who have worked and lived in cities and towns but have not settled down, provide basic public services with residence permits as the carrier, and cancel the residence permit fees; Improve the industrial and population carrying capacity of prefecture-level cities, counties and central towns, steadily establish a unified urban and rural construction land market, and improve and expand the pilot project of linking urban and rural construction land increase and decrease. This is not only good for more than 400 million migrant workers and their families, but also the infrastructure, real estate investment and consumer demand it brings will become a powerful driving force for China's economic development in the next decade.
Make good use of the new opportunities of administrative system reform and state-owned enterprise reform
The reform of administrative system will provide strong support for mass entrepreneurship and innovation. The government's reform measures such as reducing examination and approval, simplifying entrepreneurial procedures, raising the tax threshold for small and micro enterprises, improving financing conditions for small and micro enterprises, and increasing support for independent innovation will further optimize the entrepreneurial innovation environment and promote mass entrepreneurship and innovation. Enterprises are creators of wealth, and the number of enterprises is an important symbol of the level of economic development. Encouraging mass entrepreneurship is particularly important for the central and western regions. At present, the development gap between coastal areas and central and western regions is mainly reflected in the number of enterprises owned by unit population. For example, by the end of 20 13, the average number of enterprises per thousand people in Zhejiang was 10.4, 2.7 in Henan, 2.6 in Hunan, 2.4 in Sichuan and 3.85, 4.0 and 4.3 times in Zhejiang, respectively. The number of enterprises in different places is mainly due to the differences in the entrepreneurial policy environment. Therefore, in order to narrow the development gap between the central and western regions and the eastern region, we must first make great efforts to encourage the public to start businesses and create a good entrepreneurial environment. Independent innovation is the fundamental way to promote the upgrading of industries from low-end to high-end. Shenzhen has set an example in implementing the innovation-driven development strategy. The number of international patent applications in Shenzhen is far ahead in China, accounting for 48.4% in 20 13 years and 48.6% in 20 14 years. The key to this is that Shenzhen has a good environment to encourage innovation and the engineering and industrialization of technological achievements. Now, private enterprises have become the main force of independent innovation, and the number of patent applications accounts for more than two-thirds of the country. The technological innovation potential of state-owned enterprises and universities needs to be further released through deepening reform. Governments at all levels, enterprises, institutions and researchers should form a joint force to improve their independent innovation ability and create new development opportunities in innovation.
The reform of mixed ownership of state-owned enterprises will bring new development space and motivation. Deepening the reform of state-owned enterprises, changing from managing assets to managing capital, and speeding up the pilot of state-owned capital investment companies and operating companies are conducive to improving the efficiency of state-owned capital operation. The report proposes to implement the reform of mixed ownership of state-owned enterprises in an orderly manner and encourage and standardize the introduction of non-state-owned capital into investment projects. For state-owned enterprises, this is conducive to expanding the control and influence of state-owned capital, establishing a standardized company system based on the shareholding system, and enhancing the vitality of enterprises; For private enterprises, this will bring new investment opportunities and development space. The mixed development of various ownership economies is conducive to giving full play to their respective advantages, realizing the optimal combination of production factors, and thus creating new productive forces.