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Coordination

Since the end of October, Song Ya has come to a tourist city in the southwest for three consecutive times to ask for money. Earlier, Song Ya was told that a loan to the financing platform at the end of October this year could not be repaid. The reason given by the platform was that the end of the year was short of funds and it was difficult to refinance-refinancing is to borrow new and old. So one day at the end of October, Song Ya rushed to the city.

When Song Ya came to the financing platform on the same day, there were more than ten people out there. They were all financial institutions who came to ask for debt. The financing platform there were connected with many financial institutions across the country. When waiting in line together, everyone’s eyes are squinting at others, for fear that others will get the money, and they can’t get their own money, and hope that the other party will “burst” things (Public) , then “Dead friends don’t die.”

But in fact, no one dares to be the first one to explode, because the first one is the hardest to get back the debt.

Peers are asking each other, how is the financing platform, and what are the sources of funding? Can the chairman and executives be contacted? Song Ya said that, in fact, the chairman and the executives have not lost contact, the phone is connected, and the attitude is very good, but that has beenHave a meeting. “You can’t solve the problem at the meeting,” Song Ya said.

So, Song Ya went for three weeks in a row, and each time the platform chairman was very kind to receive, but there was no money to pay back. So Song Ya treats the arrears unit as a work unit. Every week there, Song Ya also goes to work and reports to the chairman of the platform company every day, asking if she has money, and also talks to other financial institutions Alas. A plate of peanut rice, a few plates of cold dishes, and a bowl of rice. Compared to the previous financing platform that hosted these financial institutions, the hospitality was much humbler.

Song Ya will also go to all levels of government to report the situation and seek government support. However, the government ’s answer did not help Song Ya much. This is an almost universal response: “Efforts are being made to coordinate and meetings are held every day to coordinate funds.”

In mid-November, when Song Ya was about to leave, the local government and the chairman of the platform went to the city for support, but there was no result.

On arrival in the city, Song Ya had a conversation with an online taxi driver on the way to the local financing platform. The driver asked Song Ya what industry he was in? “I was embarrassed to say that I was in finance, and to ask for money, I said I was in engineering,” Song Ya recalled.

I didn’t expect the driver to tell Song Ya that he was also working on the project, but the project was finished and the money would only be returned if he had to return. What surprised Song Ya was that in the next month, he encountered digital online car hire for engineering, and the reason for switching careers was the same. He could n’t get the money back, the amount of arrears was basically small. Within a million.

Reduce budget

Local governments are actively addressing these difficulties, facing pressures from fees and taxes, and they are continually saving administrative expenses, although there will be some trouble in the process.

During this year’s budget season, Zhang Di (pseudonym), who works for the Eastern Finance Bureau, was lobbied by staff from counterpart budget units, hoping that Zhang Di would not cut his department’s 2020 budget.

Zhang Di is responsible for the 2020 budget of several departments. He told the Economic Observer that the budget implementation in 2019 has been adjusted, and the 2020 budget has also been significantly reduced. “From their budget report, we cut 15% across the board first, then cut 10% in the board. We just reported to the leader,” Zhang Di said. However, the leader was dissatisfied and took it back again, demanding a 10% reduction across the board without any reduction. Zhang Di told the Economic Observer that no matter how the budget of a single administrative department is adjusted, the leader’s requirements areThe total amount has to come down.

It is difficult to continue to reduce the budget. Zhang Di takes a department he is responsible for as an example. This department is a newly established department after the reform of the organization. As soon as the budget is reported, it cuts 60% directly and reports to the bureau. Leader, cut it in half. Now we have to cut across the board and cut 10%. If the department’s first year budget is reported as 10,000 yuan, the final approval is 1,800 yuan.

This is not an isolated phenomenon. A person from the financial department of a local government in the northern region told the Economic Observer that the current approach is to reduce the expenditure of the three public companies and then the general budget. If this does not work, continue to reduce project expenditures.

The financial situation of the people in this financial department has always been very good, but due to the tax reform, tax and fee reductions and increasing economic downward pressure in recent years, as well as the state’s control of the real estate market, the source of income has gradually become tight. According to the Economic Observer, his region has been reducing expenditures in 2019, compressing three rounds, compressing 10% in the first round, and reducing basic expenses, such as San Gong, and 5% in the second round. The round directly points to specific projects. Many projects do not do or cut expenses by half, and the compression rate is also about 5%. The budget for protecting people’s livelihood projects is still sufficient, but the unusable expenses will not be spent.

The above-mentioned local finance department sources told reporters that the slowdown in fiscal revenue growth is one of the reasons for the reduction of funding. Now if you want to spend according to the original budget, you must either have the instructions of the city leaders, the minutes of the meeting, or cut the budget all. “Now when we make the 2020 budget, it is basically 10-20% lower than 2019. That is the same project. The budget for 2019 is 10 million, and in 2020 it is 8 to 9 million,” said the financial source.

What to do?

“What to do? Cut expenses and keep looking for money,” a finance official in a northern province told reporters.

The person told the Economic Observer that he has been worrying about how to raise income since the first half of the year. All he can do is focus on two aspects: the tax bureau and the financing platform. But the operation of the financing platform is more conventional now, that is, asset mortgage and political letter business. Also need to see if there is a better way to finance. Based on the idea of ​​open source and cost reduction, the 2019 budget of the region where it is located has been adjusted from an increase of 6% to an increase of 1.5%, and the increase in 2020 is even lower.

Disposing of assets is one of the solutions to the immediate dilemma. Data from the Ministry of Finance indicate that some local governments are accelerating the disposal of assets. On October 17, the Ministry of Finance ’s fiscal third quarter fiscal 2019 press conferenceLiu Jinyun, director of the Treasury Payment Center of the Ministry of Finance, said that from January to September, non-tax income was 2,370.8 billion yuan, a year-on-year increase of 29.2%. The high increase was mainly due to the increase in non-tax revenues through the payment of profits by specific financial institutions and state-owned enterprises, and the activation of state-owned resource assets through multiple channels.

“We have n’t had the difficulty to dispose of our assets, because we are basically free of wages and other issues. The main concern is development and debt repayment. It is almost impossible to rely on the existing financial funds to repay the debt. Borrowing new and old, but now it is not easy to borrow new and old, “said the eastern financial figures.

In response to the current local fiscal challenges, the incremental space needs to be opened. Feng Qiaobin suggested that instead of focusing only on throttling, it is necessary to consider government revenues, not just taxes, and the need to revitalize state-owned assets and use efficiency. Further improvement.

Feng Qiaobin further explained that Taxation cannot be expected now, and the factor of tax reduction will always exist. It is unlikely that the tax will rebound rapidly. In addition, there is limited space for reducing expenditures, and expenditures are too rigid. In addition, the downward pressure on the economy has increased, and fiscal needs to be adjusted in a counter-cyclical manner, and there will definitely be a gap. The solution is to issue bonds first, and then to find ways to revitalize the government’s assets, including state-owned enterprises and administrative assets, as well as the activation of fiscal stock funds. We must be mentally prepared to live a tight life. We must not think about suppressing expenditures and pulling taxes up. This is not right.