East China’s Jiangsu province has rolled out a slew of financial support measures to boost post-epidemic economic recovery and ensure sufficient policy tools to shore up growth and help enterprises endure the difficult situation.
The county level city of Jurong has allocated more than 50 million yuan of special funds for epidemic prevention and control and reduced the corporate social security contribution by 160 million yuan, the city’s financial operation report shows.
Affected by the COVID-19 epidemic, Jurong suffered from declining fiscal revenue in the first four months but the policy tools are sufficient to shore up growth and help enterprises endure the difficult situation.
Jiangsu Shengbang, a leading exporter in Jurong, met with setbacks from declining orders in the European and American markets since the start of this year but with the help of the government, the company has made every possible effort not to lay off anyone of its 500-strong workforce and pay the wages one time and in full.
With a view to ensuring social and economic stability, Jiangsu has allocated more than 5 billion yuan of fund to the county level to subsidize the reduction of social insurance contributions and taxation.
The provincial fiscal budget has also transferred 3.1 billion yuan of funds to the north Jiangsu regions.
The funds transferred by the central government to local governments have been paid in full so as to help with epidemic control and livelihood improvement.
In the meantime, regional governments in Jiangsu have tried their best to increase income. The finance bureau of Jurong, for example, has injected 20 million yuan to the local enterprises to trigger 200 million yuan of loan support from the local banks in the resumption of work and production.
With the significant increase in fiscal expenditure, optimizing the expenditure structure becomes particularly important.
A large portion of the expenditure will be spent on livelihood projects. The cities of Nanjing and Changzhou, for example, have earmarked 75% of the expenditure for livelihood improvement with particular focus on employment, education, medical service and public health.
On the basis of a 10% reduction in the general expenditure of the provincial budget this year, Jiangsu has strictly controlled the additional items in the implementation of the annual budget.
(Source:ourjiangsu.com)
