Expand investment, infrastructure potential

The growth rate of infrastructure investment continued to accelerate

Water conservancy project is the key area of infrastructure construction. On September 13, Zhang Xiangwei, director of the Department of Planning and Planning of the Ministry of Water Resources, said that since the beginning of this year, the Ministry of Water Resources has made every effort to speed up the construction of water conservancy projects, and achieved remarkable results in new projects, investment completion and employment absorption.

The number of projects started was the highest in the same period. Since the beginning of this year, 19,000 new water conservancy projects have been started nationwide, setting a record. In particular, the construction of a number of major projects of strategic significance, such as the second phase of the Huaihe River Waterway into the sea, the middle route of the South-to-North Water Diversion Project to supplement the Han River, and the allocation of water resources around the Beibu Gulf in Guangdong, has been smoothly started. These are major water conservancy infrastructure projects that have been discussed for a long time and have been wanted to be implemented for many years but have not been implemented.

Investment is at a record high. While increasing government investment, local government special bonds, financial support, and social capital have exerted multi-directional efforts to raise funds for water conservancy construction through multiple channels. From January to August, China invested 977.6 billion yuan in water conservancy projects, up 50.9% year on year.

Provide a large number of jobs. Give full play to the advantages of water conservancy project construction sites, wide areas, long industrial chain, and more employment, and actively create jobs, especially as many as possible to absorb rural labor employment. From January to August, the construction of water conservancy projects absorbed a total of 1.91 million workers, including 1.53 million rural workers.

Zhang Liqun, a researcher at the macroeconomic Research Department of the Development Research Center of The State Council, analyzed to reporters that the construction of infrastructure as a starting point, giving play to the traction of major projects and the leverage role of government investment is an important measure to mobilize the enthusiasm of private investment and expand domestic demand. "Recently, infrastructure investment as a whole has performed better, including in the water sector. From January to July, infrastructure investment increased by 7.4% year-on-year, 0.3, 0.7 and 0.9 percentage points higher than that in the first half of the year, January-May and January-April, respectively. The growth rate has accelerated for three consecutive months, showing a strong recovery trend. Zhang Liqun said.

We will make good use of the balance limit for local special bonds

Focusing on infrastructure investment, all regions and departments have accelerated the issuance and use of local government special bonds since the beginning of this year. According to data from the Ministry of Finance, as of the end of August, a total of 3.52 trillion yuan of special bonds had been issued, and the quota for project construction had been basically issued, much earlier than in previous years.

Next, how to further make good use of special debt? The executive meeting of The State Council held on September 7 decided to revitalize the limit of more than 500 billion yuan of special bonds outstanding by local governments since 2019 in accordance with the law, 70% of which will be retained by local governments, and 30% of which will be allocated by the central finance as a whole and tilt to regions with more mature projects.

According to reports, the special debt balance limit is the part of the special debt balance less than the limit, mainly in order to control the level of debt risk, through strengthening the management of financial revenue and expenditure, arrange financial funds to repay maturing special bonds, reduce the balance of special debt, the corresponding limit space.

"The Ministry of Finance plans to guide local governments to make good use of the balance limit of more than 500 billion yuan of special debt in accordance with the law, and issue new special bonds to support the construction of major projects." Assistant Minister of Finance Ao Wenhan said, specifically, focus on supporting transportation infrastructure, energy, agriculture, forestry and water conservancy, ecological environmental protection, social undertakings, urban and rural cold chain logistics infrastructure, municipal and industrial park infrastructure, national major strategic projects, low-income housing projects, as well as new energy projects and new infrastructure projects.

Zhang Liqun believes that the relevant support measures have released a positive signal of comprehensively strengthening infrastructure construction and focusing on expanding domestic demand, and with the acceleration of relevant measures, there is no small potential for infrastructure investment, and the next growth rate is expected to further increase.

Promote the implementation of the project as soon as possible

In key areas of infrastructure construction, policy-oriented development financial instruments continued to gain strength. According to data from the People's Bank of China, in July, the central bank supported relevant institutions to set up and operate financial instruments totaling 300 billion yuan to replenish capital for major projects. As of August 26, 300 billion yuan has been fully invested, supporting more than 900 major projects.

The executive meeting of The State Council held on August 24 proposed to increase the quota of more than 300 billion yuan on the basis of the 300 billion yuan policy development financial instruments that have fallen into the project.

"Increasing the quota of more than 300 billion yuan to replenish project capital will help better play the comprehensive effect of effective investment to strengthen weak areas, adjust the structure, stabilize employment and boost consumption, and support economic recovery and development." Liu Guoqiang, vice governor of the People's Bank of China, said it will urge projects that have been supported by financial instruments to speed up preparations and factor guarantees, pay and use funds in an orderly manner according to the construction schedule, ensure that construction starts as soon as possible, and work before the end of the third quarter to form more physical workload and effective investment. At the same time, we will guide policy development banks to make good use of new credit lines and timely implement the issuance of supporting loans for projects already launched by financial instruments. We will guide commercial banks' credit funds and other social capital to follow up and provide financing, and work together to give full play to the role of financial support.

Luo Guosan, director of the Fixed Assets Investment Department of the National Development and Reform Commission, said that the National Development and Reform Commission will work with relevant parties to use sufficient policy-oriented development financial instruments, give full play to the role of the coordination mechanism for important projects to promote effective investment, effectively and orderly and effectively promote the implementation of projects as soon as possible, better play the key role of investment, and help consolidate the trend of economic recovery. We will promote steady, sound and sustainable economic and social development.