Home » Shenzhen’s acceptance of central financial subsidies is said to be rare | Beijing | Epoch Times

Shenzhen’s acceptance of central financial subsidies is said to be rare | Beijing | Epoch Times

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Shenzhen’s acceptance of central financial subsidies is said to be rare | Beijing | Epoch Times

[Epoch Times, November 3, 2022]Shenzhen, Guangdong has been a city that has contributed to the CCP’s fiscal revenue for many years, but this year Shenzhen turned to Beijing for help and accepted financial subsidies from the central government.

On October 31, the Ministry of Finance of the Communist Party of China issued the “Implementation Opinions on Supporting Shenzhen’s Exploration and Innovation of Fiscal Policy System and Management System” (referred to as “Opinions”). The Guangdong Provincial Department of Finance forwarded the “Opinions” on November 2. The “Opinions” mentioned that the subsidy for the construction of affordable housing in Shenzhen should be increased, and the support for public rental housing, affordable rental housing and the renovation of old communities in Shenzhen should be increased.

Radio Free Asia reported that Shenzhen was once the richest city in China, and it was rare to seek help from Beijing and receive subsidies from the central government.

The netizen left a message saying: “Shenzhen is the vanguard of reform and opening up, and the restoration of Shenzhen should be the first to turn backward. Shenzhen will start with the guide price of second-hand housing, and Shenzhen will start with the guide price of rent. It is obvious that Shenzhen will be the forerunner of the planned economy.” “Not uncommon! Shanghai can even cover the deficit…”

“What I’m curious about is that even if Shenzhen can’t be done, where will the central government get the money to subsidize it?” “Shanghai has more money than Shenzhen, and it still runs a deficit. Shenzhen was created by Hong Kong. If Hong Kong is dead, Shenzhen will also die.”

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“Interface News” reported on the 3rd that Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Urban Planning Institute, believes that this increased support can create a (Shenzhen) consumption-oriented sustainable fiscal growth momentum and form a virtuous cycle of revenue and expenditure.

Earlier data from the Shenzhen Municipal Bureau of Finance showed that from January to April 2022, Shenzhen’s general public budget revenue reached 130.98 billion yuan, a drop of 12.6%, and a sharp drop of 44% in April alone. Shenzhen’s public budget expenditure in the first quarter increased by 10.9%, and the total expenditure exceeded the income by 19.188 billion yuan.

Shenzhen was originally a city that contributed financially to the CCP, and its per capita GDP ranked first in China in 2019, but it will drop to fifth in 2021. Affected by the epidemic, Shenzhen’s GDP growth rate and increment last year ranked at the bottom of the four first-tier cities in “Beijing, Shanghai, Guangzhou and Shenzhen”, and the growth rate also lags behind the national average growth rate (8.1%).

The aforementioned “Opinions” also stated that the Ministry of Finance and other ministries and commissions supported Shenzhen to actively study major national tax reforms. Radio Free Asia reported that this means that a new tax is about to be introduced, which is considered by the outside world to be a property tax.

In October last year, the Standing Committee of the Chinese People’s Congress decided to conduct a pilot project of real estate tax collection in some regions, and formulate a real estate tax law when conditions are ripe.

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According to the regulations, the real estate tax in the pilot areas is subject to various types of real estate such as “residential” and “non-residential”, excluding legally owned rural homesteads and their upper residences. The taxpayers of real estate tax are “land-use right holders” and “house owners”.

The Wall Street Journal said in October last year that Xi Jinping appointed Vice Premier Han Zheng to promote the collection of real estate taxes, but was strongly opposed by the party, so the pilot cities were narrowed, worried about “social stability issues.”

Responsible editor: Xiao Lusheng#

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