China to issue a special sovereign debt of 1000 billion yuans for disaster recovery and rebuild, improving protection against natural disasters and loss prevention. The first half will be transferred to local authorities in the Q4 of this year. The second half will be in the next year.
This will increase the fiscal deficit from 3880 billions to 4880 billions for Y2023. The deficit to GDP ratio will increase from 3% to 3.8% accordingly.
An additional 1 trillion yuan of government bonds will be issued in the fourth quarter, Xinhua News Agency explains the meaning behind it
Xinhua News Agency, Beijing, October 24 (Reporter Shen Cheng) The central government will
issue an additional 1,000 billion yuan in 2023 treasury bonds in the fourth quarter of this year. All the additional treasury bonds will be arranged to local governments through transfer payments to focus on supporting
post-disaster recovery and reconstruction and disaster prevention. The shortcomings of disaster reduction and relief are to improve the country's ability to withstand natural disasters as a whole.
On the 24th, the Sixth Session of the Standing Committee of the 14th National People's Congress voted to adopt the resolution of the Standing Committee of the National People's Congress on approving the State Council's issuance of additional treasury bonds and the 2023 central budget adjustment plan, clarifying the above arrangements.
Since the beginning of this year, many places in our country have suffered from heavy rains, floods, typhoons and other disasters, and local post-disaster recovery and reconstruction tasks have been heavy. In recent years, various types of extreme natural disasters have occurred frequently, placing higher demands on my country's disaster prevention, reduction, and relief capabilities. The Standing Committee of the Political Bureau of the CPC Central Committee held a meeting on August 17 to study and deploy flood prevention, flood relief, and post-disaster recovery and reconstruction work, and proposed to "accelerate recovery and reconstruction" and "further enhance my country's disaster prevention, reduction, and relief capabilities."
In order to implement the spirit of the meeting of the Standing Committee of the Political Bureau of the CPC Central Committee and ensure the implementation of relevant work with strong funds, the central government will issue an additional 1,000 billion yuan in 2023 treasury bonds in the fourth quarter of this year, which will be managed as special treasury bonds.
The national fiscal deficit will increase from 3.88 trillion yuan to 4.88 trillion yuan, and the deficit rate is expected to increase from 3% to about 3.8%.
All the additional government bonds issued this time will be allocated to local governments through transfer payments.
It is planned to use 500 billion yuan this year and carry forward 500 billion yuan for use next year . According to the Ministry of Finance, the funds will
be used in eight major areas : post-disaster recovery and reconstruction, key flood control and management projects, natural disaster emergency response capacity improvement projects, other key flood control projects, irrigation area construction and renovation and key soil erosion control projects, and urban drainage and flood prevention capacity improvement. Action, comprehensive prevention and control system construction projects for key natural disasters, and high-standard farmland construction in Northeast China and disaster-stricken areas in the Beijing-Tianjin-Hebei region.
