According to the Economic Voice of the China Media Group, Tianxia Finance and Economics reported that this year, China's proactive fiscal policy has become more proactive, sending new signals and taking new measures to hedge the impact of the epidemic with greater policy intensity, thus becoming a key force to stabilize the basic economic fundamentals. Recently, reporters from the Central Radio of the Taiwan News Bureau conducted in-depth surveys in many places across the country to observe how the proactive fiscal policy is targeted to benefit enterprises and benefit the people.

In order to provide a lifeline to local governments, an additional 1 trillion yuan deficit and 1 trillion yuan of special national debt this year, totaling 2 trillion yuan, will be transferred to local governments through special transfer payment mechanisms. What is the special mechanism of transfer payment as the system innovation of macro-control mode? How does the central government direct funds help the grassroots "three guarantees"? The second issue of a series of grassroots reports on The Effectiveness of Fiscal Policy focuses on how to "cut through" the new fiscal funds.

In the county of hunan province pingjiang xian han chang, flood home Duan community, residents told reporters that his monthly low subsidies this year did not drop, indeed improve the 20 yuan. Some of the 20 yuan comes from the central direct fund; In Futian Community, Futian Street, Futian District, Shenzhen, the newly purchased vehicle-mounted mobile CT is serving the residents, part of which is also funded directly by the central government.

Thanks to a special payment mechanism, trillions of yuan of direct central government funds have been channeled to the bottom of the country in the first place, reaching the nerve ends of cities and counties. As the system innovation of macro-control this year, what is the special payment mechanism?

The reporter found in the survey that "fast" is the primary key word.

Tang Yu, deputy director of the budget department of Chongqing's Finance bureau, said, "Take chongqing for example. On June 23, we received the budget targets for special transfer payments and special national debt funds issued by the Ministry of Finance. Formulate the allocation plan and submit it to the Ministry of Finance for examination and approval on June 28; On June 30, budget targets were issued to the districts and counties. It only took eight days from the ministry of Finance to issue the provincial budget and then all the budgets were distributed to districts and counties."

The province does not intercept also is this year special transfer payment mechanism a big special place. Hunan provincial Department of Finance budget director Hu Yungui said that the central direct funds from the central to the grassroots, "a pole inserted in the bottom", the province only for the "god of wealth". "By June 30, the central government had arranged 64.18 billion yuan of direct funds from the central government in our province. In addition to setting aside 20 percent of the special national debt, or 4.5 billion yuan, as required by the central government's policy, to deal with possible new difficulties in the future, the other 59.68 billion yuan has already been allocated to cities and counties before June 30."

Money to the grassroots, how to spend the specific? According to the earlier deployment, this year's 2 trillion yuan of direct central government funds will mainly be used to support local governments in spending on health care, epidemic prevention and infrastructure construction.

According to the data disclosed to reporters by Zhuzhou Finance Bureau of Hunan Province, it has received 3.453 billion yuan of direct funds from the central government, among which the city-level distribution has reached 100%. Li Nengbin, director of the Finance Bureau of Zhuzhou city, Hunan Province, said that 460 million yuan of special national debt was used to protect market entities and people's livelihood. "For example, of the 460 million yuan, 360 million yuan is for the insurance market, which is used to support our major industries -- rail transit and emerging industries -- big data industry. "Another 100 million yuan will be used for areas that are urgently needed for people's livelihood, such as pollution prevention and control and environmental control, so that people can feel the direct benefit of the central government's funds."

Huang Weixiong, head of Pingjiang County in Hunan province, told reporters that as a poor county, by the end of July, Pingjiang county had received 1.98 billion yuan of direct funds from the central government, including 519.09 million yuan for old-age insurance, 36.67 million yuan for medical care, 31.42 million yuan for employment and 7.86 million yuan for education. People's livelihood expenditure accounted for the majority. "In accordance with the central government's requirements for maintaining stability and ensuring social security, these measures will be mainly used to ensure basic livelihood, employment, market entities and food and energy security. We can say that the direct funds from the central government are very accurate and very fast, which is a timely rain for the grassroots finance of cities and counties."

In western Chongqing, also at the "nerve end" of the financial system, he Furong, deputy director of chongqing's Jiangjin District Finance Bureau, said that direct funds from the central government are now taking effect, with basic livelihood and market players becoming the important direction of spending. "Chongqing has 739 million yuan in direct central funds allocated to Jiangjin district. At present, all the funds have been allocated, of which 50 percent is mainly used for basic livelihood and rigid expenditure of market entities. The special national debt for epidemic prevention is mainly used for the purchase of medical equipment for epidemic prevention and major infrastructure construction, including domestic garbage landfill sites and sewage pipe networks, "he said.

Source: Ministry of Finance, PRC