We will increase basic pensions for retirees, increase per capita government subsidies for medical insurance for non-working residents by an additional 30 yuan, and do our utmost to help new citizens and young people ease housing difficulties… On March 5, Premier Li Keqiang delivered the government work report at the opening of the fourth session of the 13th National People’s Congress, again sending out this year’s policy red envelopes.
This year’s GDP target has been set at over 6 percent. Li said the proactive fiscal policy should be more quality, efficient and sustainable. Taking into account the effective control of the epidemic and gradual economic recovery, the deficit to GDP ratio will be set at around 3.2 percent this year, lower than last year’s forecast of 3.6 percent. At the same time, no special bonds will be issued this year to fight the epidemic.
What policies will benefit the people this year, and who will actually benefit?
Per capita government subsidies for medical insurance for non-working residents will be increased by 30 yuan
According to the government work report, we will advance the development of the health care system. On the basis of last year’s 30 yuan increase in per capita government subsidies for medical insurance for non-working residents, we will increase per capita government subsidies for medical insurance for non-working residents by 30 yuan and basic public health services by 5 yuan this year.
At the same time, we will gradually include outpatient expenses in the unified fund for reimbursement, and include more medicines for chronic and common diseases and high-value medical supplies in centralized procurement, so as to further significantly reduce the medical burden on patients.
We will help new citizens and young people ease their housing difficulties
The government work report once again mentioned ensuring people’s housing needs. We will continue to see that housing is for living in, not speculation. We will solve the prominent housing problem in big cities, effectively increase the supply of government-subsidized rental housing and housing with joint ownership, reduce the burden of taxes and fees on rental housing, and do our utmost to help new citizens and young people ease housing difficulties.
We will raise basic pensions for retirees
We will increase basic pensions for retirees and subsidies and living allowances for entitled groups. We will develop community services for elderly care, childcare, dining and cleaning. The promotion of intelligent services should meet the needs of the elderly and prevent intelligent tools from causing obstacles to the daily life of the elderly.
Tax cuts reduce the burden on enterprises
This year, we will continue to implement the institutional tax reduction policy, extend the period for implementing certain phased policies, implement new structural tax reduction measures, and raise the VAT threshold for small-scale taxpayers from 100,000 yuan to 150,000 yuan on monthly sales. On the basis of the existing preferential policies, the income tax will be further halved for the part of annual taxable income less than 1 million yuan for small and micro enterprises and individual businesses.
At the same time, we will further solve the financing problems of small and micro businesses, continue the policy of delaying repayment of principal and interest on loans to small and micro businesses of Pratt & Whitney, optimize the regulation of deposit interest rates, promote the further reduction of actual lending rates, focus on stabilizing existing positions, and continue to give necessary policy support to enterprises that do not lay off employees.
Average rates for broadband and dedicated lines for small and medium-sized enterprises will be cut by another 10 percent
This year, we will put all items requiring administrative approval on a list, and work hard to cut the number of procedures, materials, and time limits for enterprise approval. We will implement a simple cancellation system for small, medium and micro enterprises. This year, we will basically ensure that all matters that are frequently handled by enterprises and the general public are handled across provincial borders.
We will work to lower the production and operation costs of enterprises. We will continue to cut electricity prices for general industry and commerce, and cut average rates for broadband and dedicated lines for small and medium-sized enterprises by another 10 percent.
We will spread differentiated tolls on expressways across the country, and resolutely crack down on restrictions on the height and width of roads and inspection checkpoints that impede the passage of trucks. We will crack down on unauthorised charges, fines and assessments, and cut by 20 percent the fees levied on airlines under the Civil Aviation Development Fund.
We will deepen efforts to encourage people to start businesses and make innovations. We will continue to implement the policy of deducting 75 percent more of enterprises’ research and development expenses, and raise the rate of additional deductions for manufacturing enterprises to 100 percent. We will use tax incentives to encourage enterprises to increase their R&D input, so as to encourage them to lead development through innovation.
53,000 old urban residential areas were renovated
This year, 3.65 trillion yuan of special bonds will be allocated to local governments, 0.1 trillion yuan less than last year’s 3.75 trillion yuan. The central government will allocate 610 billion yuan for investment, an increase of 10 billion yuan over last year. We will continue to support major projects to promote coordinated development among different regions, develop new types of infrastructure such as the information network, and focus more on projects that benefit people’s livelihood. We will start work on renovating 53,000 old urban residential areas.
article links：Government work report shows red packets this year
Reprint indicated source：Shine Trader Limited Live information