Xinhua News Agency, Beijing, September 8. Premier Li Keqiang chaired an executive meeting of the State Council on September 7 to deploy policies to strengthen support for employment and entrepreneurship, expand employment space, and cultivate and expand market entities and new economic drivers; It was decided to provide periodic fiscal discounts on loans for equipment renewal and renovation in some fields and to increase credit support for the social service industry to promote consumption to play a leading role; to deploy tax reduction policies to support enterprise innovation in phases to encourage enterprises to increase investment and improve innovation capabilities; to determine the revitalization in accordance with the law The measures to limit local special debt balances can better play the role of effective investment in achieving multiple goals with one stone.
The meeting pointed out that employment is the foundation of people's livelihood, entrepreneurship can spawn more market entities to create employment, and stabilizing growth is mainly to stabilize employment. It is necessary to implement the arrangements of the Party Central Committee and the State Council, consolidate the responsibilities of local entities, and intensify efforts to promote employment and entrepreneurship. First, in areas where job-stay training subsidies are implemented, the unemployment insurance balance reserve will be relaxed from 24 months to 18 months. College graduates and registered unemployed youth who have not been employed within two years will be included in the job expansion subsidy. Disburse unemployment insurance benefits to unemployed persons in a timely manner. Stabilize employment by strengthening skills training for migrant workers. The second is to support the platform economy and stabilize employment. Social security subsidies will be provided to people in difficulty who rely on the platform for flexible employment and college graduates who have not been employed within two years. Use special loans to support platform companies. Third, if business-guaranteed borrowers are in trouble due to the epidemic, their repayments can be extended for one year. Guide banks to increase first loans, credit loans, renewal loans, medium and long-term loans, etc. for small, medium and micro enterprises. Fourth, insurance funds and others are encouraged to invest in venture capital funds in accordance with the law. Optimize the sales restriction period for shareholders of venture capital companies to facilitate the reinvestment of recovered funds. Fifth, government-invested entrepreneurial incubation bases, etc., do their best to provide space to start-up companies free of charge.
The meeting pointed out that insufficient demand is the current prominent contradiction, and efforts should be made to increase demand through consumption and investment, promote social investment, and use investment to drive consumption. Supporting the upgrading and transformation of equipment in weak areas of economic and social development will help increase the level of sustainability, increase actual demand in the manufacturing and service industries, and boost market confidence. Implement phased incentive policies for new loans for universities, vocational schools and training bases, hospitals, underground comprehensive pipeline corridors, new infrastructure, industrial digital transformation, and equipment purchase and renovation for small, medium and micro enterprises, individual industrial and commercial households, etc. The central government The fiscal discount is 2.5 percentage points, with a term of 2 years. The deadline to apply for interest discounts is December 31 this year. Correspondingly, monetary policy will increase support for supporting financing of commercial banks. At the same time, banks are guided to increase credit support for industries such as education, cultural tourism, health and fitness, elderly care and childcare, community and housekeeping services, accommodation and catering, so as to expand consumption and investment in social services.
The meeting pointed out that enterprises are the main entities of innovation and should implement phased tax reduction policies to support enterprise innovation until December 31 this year. This is inclusive, fair, efficient and direct. First, for the equipment purchased by high-tech enterprises in the fourth quarter of this year, a one-time full pre-tax deduction and an additional RMB 100 deduction will be allowed for the year, and local and central finance will provide further support. Second, in the fourth quarter of this year, for industries that currently deduct R&D expenses at a rate of 75% before tax, the deduction rate will be uniformly increased to 100% to encourage the transformation and updating of equipment. The third is to allow full pre-tax deduction and super deduction for basic research expenditures such as enterprise-funded scientific research institutions.
The meeting pointed out that infrastructure and other matters are related to development and people's livelihood, and there is huge room for investment. Special bonds must continue to be used to make up for shortcomings. The meeting decided to revitalize the local special debt limit of more than 500 billion yuan outstanding since 2019 in accordance with the law, 70% of which will be retained by local governments, and 30% will be allocated by the central government as a whole and tilted towards regions with many mature projects. All localities must complete the issuance before the end of October, give priority to supporting projects under construction, and form more physical workload within the year.
Other matters were considered at the meeting.
Legal basis
"Constitution of the People's Republic of China"
Article 88 The Prime Minister leads the work of the State Council. The Vice Prime Minister and State Councilor assist the Prime Minister in his work. The Prime Minister, Vice Premiers, State Councilors, and Secretary-General form the executive meeting of the State Council. The Prime Minister convenes and presides over the executive meetings of the State Council and the plenary meetings of the State Council.
"Organic Law of the State Council of the People's Republic of China"
Article 4 The meetings of the State Council are divided into plenary meetings of the State Council and executive meetings of the State Council.
The plenary session of the State Council is composed of all members of the State Council. The executive meeting of the State Council is composed of the Prime Minister, Vice Premiers, State Councilors, and Secretary-General. The Prime Minister convenes and presides over the plenary session of the State Council and the executive meeting of the State Council. Major issues in the work of the State Council must be discussed and decided at the executive meeting of the State Council or the plenary session of the State Council.