Implementation of the main fiscal and tax policies and other major fiscal work in 2020

（五）2020年主要财税政策落实和重点财政工作情况。

In 2020, finance departments conscientiously implemented the decisions and plans of the Party Central Committee and the State Council; adhered to the Budget Law and its implementation regulations, and the Guidelines on People's Congresses Expanding the Focus of Budget Review and Oversight to Expenditure Budgets and Policies; and worked as required by the outcomes of the NPC's deliberations and their comments on the budgets. We developed and launched fiscal and tax policies to counter the impacts of the epidemic in a timely manner, supported efforts to ensure stability on the six fronts and maintain security in the six areas, and exerted our key role in stabilizing the economy. At the same time, we pushed forward fiscal and tax system reform at a faster pace, and provided strong guarantees for economic development and social stability.

2020年，财政部门认真贯彻党中央、国务院决策部署，按照预算法及其实施条例和《关于人大预算审查监督重点向支出预算和政策拓展的指导意见》，落实全国人大预算决议和审议意见要求，及时研究出台对冲疫情影响的财税政策，支持做好“六稳”工作、落实“六保”任务，发挥稳定经济的关键作用，同时加快推进财税体制改革，有力维护经济发展和社会稳定大局。

We devoted all-out efforts to supporting the fight against the Covid-19 epidemic. Guaranteeing funds for epidemic prevention and control as a top priority. Setting our sights on epidemic prevention and control as our most important and urgent task, we acted according to the principle that extraordinary matters demand extraordinary measures, expediting the appropriation of funds to ensure that members of the public would not forgo medical treatment out of concern for the costs and that local authorities would not have to cut corners on medical treatment and prevention and control efforts due to lack of funding. We stepped up support for Hubei and other hard-hit areas. We strengthened oversight on the allocation and use of funds, while anti-epidemic expenditures from finance authorities at all levels exceeded 400 billion yuan, providing related work with firm support.

全力支持抗击新冠肺炎疫情。优先保障疫情防控经费。把疫情防控作为最重要、最紧迫的工作来抓，按照特事特办、急事急办原则，加快资金拨付使用，确保人民群众不因担心费用问题而不敢就诊，确保各地不因资金问题而影响医疗救治和疫情防控。加大对湖北等疫情严重地区支持力度。加强资金分配和使用监管，各级财政疫情防控资金支出超过4000亿元，为开展相关工作提供了坚实支撑。

Strengthening fiscal and tax support policies for responding to the epidemic. We saw that Covid-19 patients were provided with free medical treatment funded by the government, and spared no cost to save lives. Frontline medical workers and epidemic prevention workers were granted temporary work subsidies, and subsidy standards for Hubei Province (including medical teams sent to assist Hubei) were doubled. We reduced or waived the taxes and fees of key enterprises that produce epidemic prevention and control supplies, and provided funding support through preferential loan interest subsidies and other means. We implemented government-funded procurement and stockpiling of key medical materials that were in short supply. We actively supported scientific research related to epidemic prevention and control, and promoted medicine and vaccine R&D. At the same time, we vigorously supported the development of the public health system, the major epidemic containment and treatment system, and the emergency supply system in order to raise our capacity to handle major public health emergencies and ramp up the production of emergency supplies.

强化应对疫情的财税支持政策。对新冠肺炎患者实行财政兜底免费救治，不惜一切代价救治生命。对参加疫情防控的一线医务人员和防疫工作者给予临时性工作补助，疫情防控期间湖北省（含援鄂医疗队）补助标准再提高一倍。对疫情防控重点保障企业给予税费减免，通过优惠贷款贴息等方式提供资金支持。对紧缺的重点医疗物资实施政府兜底收储。积极支持疫情防控科研攻关，推进药物和疫苗研发等。同时，大力支持公共卫生体系、重大疫情防控救治体系和应急物资保障体系建设，提升重大突发公共卫生事件应急处置和救治、应急物资生产动员能力。

We introduced and implemented broad policies for alleviating difficulties caused by the epidemic. Offsetting the impact of the epidemic with stronger policies. We continued working to make our proactive fiscal policy more proactive and impactful, and adopted special measures for these unusual circumstances. The deficit-to-GDP ratio was raised to above 3.6%. The deficit increased by 1 trillion yuan, and an additional 1 trillion yuan of Covid-19 bonds were issued, with the total of 2 trillion yuan used primarily to ensure employment, meet basic living needs, and protect market entities. This includes support for efforts to cut taxes and fees, reduce rents and interest on loans, and increase consumption and investment. We issued an additional 1.6 trillion-yuan worth of local government special-purpose bonds compared to the previous year, and expanded the scope of their use appropriately. We also raised the proportion of special bonds that could be used as project capital, thereby actively expanding effective investment.

出台实施规模性纾困政策。以更大的政策力度对冲疫情影响。坚持积极的财政政策更加积极有为，特殊时期采取特殊举措，赤字率提高到3.6%以上，赤字规模增加1万亿元，发行1万亿元抗疫特别国债，上述2万亿元主要用于保就业、保基本民生、保市场主体，包括支持减税降费、减租降息、扩大消费和投资等。新增地方政府专项债券比上年增加1.6万亿元，适当拓宽使用范围，提高专项债券资金可用作项目资本金的比例，积极扩大有效投资。加大减税降费力度支持纾解企业经营困难。

Stepping up tax and fee cuts to help alleviate the operational difficulties of enterprises. Through a combination of temporary large-scale tax and fee cuts and institutional arrangements, we reduced the burden on market entities by more than 2.6 trillion yuan for the year. On the basis of implementing institutional policies such as VAT rates reductions, special additional deductions for individual income tax, and downward adjustments of enterprise contributions to old-age insurance schemes and according to the needs of the epidemic response, we launched and implemented 7 rounds of tax and fee reductions including 28 specific policies. We promptly introduced temporary measures including exempting micro, small, and medium-sized enterprises from paying social insurance contributions and reducing or waiving VAT for small-scale taxpayers and certain industries, and postponed collection of income tax for small and micro businesses and self-employed individuals. With our focus on protecting market entities, we channeled support toward micro, small, and medium-sized enterprises, self-employed individuals, and enterprises in vulnerable industries.

实施阶段性大规模减税降费，与制度性安排相结合，全年为市场主体减负超过2.6万亿元。在实施降低增值税税率、个人所得税专项附加扣除、降低企业养老保险费率等制度性政策的基础上，根据应对疫情的需要，新出台实施7批28项减税降费政策，及时推出免征中小微企业社保费、减免小规模纳税人和部分行业增值税等阶段性措施，延缓小微企业、个体工商户所得税缴纳，着力支持保市场主体，向中小微企业、个体工商户和困难行业企业倾斜。

Increasing transfer payments to alleviate difficulties in fiscal operations at the primary level. Transfer payments from the central government to local governments reached 8.33 trillion yuan, an increase of 895.5 billion yuan or 12% over the previous year. This was the largest increase in recent years in both rate and scale, with payments weighted toward the central and western regions and areas in need, in order to ensure the growth of primary-level governments' fiscal capacity. The ratio of funds retained by local governments was raised temporarily, and differentiated allocation of funds was implemented. Local governments' spending for ensuring people's basic wellbeing, payment of salaries, and normal government functioning was ensured quite effectively.

加大转移支付力度缓解基层财政运行困难。中央对地方转移支付达到8.33万亿元，比上年增加8955亿元，增长12%，增量和增幅为近年来最高，并重点向中西部和困难地区倾斜，确保基层财力增长。阶段性提高地方财政资金留用比例，实行差异化资金调度，地方“三保”（保基本民生、保工资、保运转）支出得到较好保障。

We made decisive achievements in driving forward the three critical battles. Helping ensure victory in the battle against poverty on schedule. Poverty alleviation measures were implemented precisely with the focus on counties and people that remain in poverty. Central government funding earmarked for poverty alleviation increased by 20 billion yuan for the fifth year running and reached 146.1 billion yuan, with these funds weighted toward regions severely affected by the epidemic and areas that have been designated for supervision in their poverty eradication efforts. A one-time increase of 30 billion yuan in comprehensive fiscal capacity subsidies was implemented in order to help local governments remedy shortcomings in the battle against poverty. We provided greater support for poverty alleviation through the development of local industries and employment, and devoted focus to resolving prominent problems under efforts to guarantee the basic food and clothing needs of the rural poor population and ensure that they have access to compulsory education, basic medical services, and housing. We stepped up end-to-end oversight on the performance of poverty alleviation programs, and refined mechanisms for the monitoring of funds featuring coordination between departments and central and local authorities.

推动三大攻坚战取得决定性成就。支持如期打赢脱贫攻坚战。聚焦剩余贫困县和贫困人口，精准落实帮扶措施。中央财政专项扶贫资金连续第五年增加200亿元，达到1461亿元，并向受疫情影响较重地区、挂牌督战地区倾斜。一次性增加综合性财力补助资金300亿元，支持地方脱贫攻坚补短板。加大对产业扶贫、就业扶贫的支持，着力解决“两不愁三保障”突出问题。加强扶贫项目资金全过程绩效管理，健全部门协同、上下联动的资金监管机制。

Promoting noticeable environmental improvements. We supported the fight to keep our skies blue, our waters clear, and our lands pollution-free. We followed through with the implementation of pilot projects to protect and restore mountain, water, forest, farmland, lake, and grassland ecosystems. We continued to push forward forest and grassland ecological conservation and restoration, and bolstered efforts to protect biodiversity across the board. We guided the launch of trial compensation mechanisms for ecological conservation within the entire Yellow River basin, and encouraged provinces and autonomous regions along the river to work together in coordinating conservation and remediation efforts. We promoted the official launch of the national green development fund, and provided support to provinces and municipalities along the Yangtze Economic Belt for environmental protection and energy and resource conservation.

推动生态环境明显改善。支持打好蓝天、碧水、净土保卫战。深入实施山水林田湖草生态保护修复工程试点。持续推进林业草原生态保护修复，全面加强生物多样性保护。引导黄河全流域开展横向生态补偿机制试点，带动沿黄各省区共抓大保护大治理。推动国家绿色发展基金挂牌运营，支持长江经济带沿线省市开展环境保护、能源资源节约利用等。

Capturing positive results in forestalling and defusing major risks. We refined mechanisms for regular debt oversight, strengthened policy coordination, and implemented joint supervision, thereby mitigating risks related to hidden local government debt. A total of 200 billion yuan from newly-issued local government special-purpose bonds was earmarked for helping to defuse risks for small and medium-sized banks.

防范化解重大风险取得积极成效。完善债务常态化监控机制，强化政策协同，实施联合监管，地方政府隐性债务风险得到缓释。从新增地方政府专项债券额度中安排2000亿元，支持化解中小银行风险。