CCTV News: This year's "Government Work Report" sets the expected target for economic growth this year at around 5%. What factors are the considerations for setting such a goal? Let’s see the expert’s analysis and interpretation.

Experts said that this year, the economic growth target will be set at around 5%, which is based on the current and the long-term, injecting stable expectations into market entities. Zhang Linshan, a researcher at the Macroeconomic Research Institute of the National Development and Reform Commission, said that in the short term, the 5% growth rate is the key support for "stabilizing employment, preventing risks, and benefiting people's livelihood"; in the medium and long term, this goal is in an orderly manner with the "14th Five-Year Plan" and the 2035 long-term goal, leaving elastic space for strategic tasks such as deepening reform, scientific and technological innovation, and green transformation. What is particularly important is that the goal of 5% is not simply pursuing speed, but highlighting the clear direction of "facing difficulties" and conveying the determination to "stimulate endogenous motivation with structural reform."

Experts said that the current trend of my country's economy continues to recover and improve is constantly consolidating and expanding, economic development has accumulated a lot of positive and favorable conditions, and macroeconomic policies have provided strong support, which has laid the foundation for the realization of the growth target as scheduled.

Zou Yunhan, deputy director of the Macroeconomic Research Office of the National Information Center of the National Development and Reform Commission, said: There are three effects on target setting, allowing the potential growth rate to be realized. The first is the innovation effect, which has already led the way in many cutting-edge fields; the second is the market effect. China is the largest single market in the world, and in fact it provides a very large test site for all scientific and technological innovation achievements, and accelerates the promotion of these test results into real production and life; third, this year, the policy intensity has been significantly increased, targeting the key issues of the national economy from production distribution, exchange and consumption. Therefore, this 5% growth target is necessary and conditional to achieve.

What do you think if the deficit ratio increases to about 4%?

This year's government work report proposes to increase the deficit ratio and increase the scale of bond issuance. How do you understand it?

This year's government work report proposes that the deficit ratio this year is planned to be arranged at about 4%, an increase of one percentage point over the previous year, with a deficit scale of 5.66 trillion yuan, an increase of 1.6 trillion yuan over the previous year.

What is the deficit ratio? What will happen if the upward adjustment? For example, a country's GDP is 100 yuan, and its fiscal budget revenue is 3 yuan, but its expenditure is 4 yuan. The income and expenditure difference between 1 yuan needs to be compensated by issuing bonds. The deficit is 1 yuan and the deficit rate is 1%. The higher the deficit, the more money the government has to support economic development.

So what impact will increase the deficit ratio have? What does it have to do with everyone?

From the national economic development, increasing the deficit ratio can "grab time" for economic development and transformation. Such as industrial upgrading and technological development are all "marathons" that burn money. By increasing the deficit ratio, more funds can be used to vigorously develop technology and borrow future money for current development opportunities.

To put it more broadly, increasing the deficit ratio is still an important policy signal, reflecting the government's firm determination to promote economic recovery and improvement, and can play a very important role in stabilizing market confidence and social expectations. The government borrows money to invest in areas with economic and social benefits such as high-speed rail construction, 6G base stations, and the development of science and technology as needed. It can not only promote the development of these fields, but also encourage the market, drive corporate investment, stimulate employment, and play a series of driving roles.

The government work report also proposes that it plans to issue 1.3 trillion yuan of ultra-long-term special treasury bonds, and plans to issue 500 billion yuan of special treasury bonds to support large state-owned commercial banks to supplement capital. It plans to arrange 4.4 trillion yuan of local government special bonds, and this year the total new government debt is 11.86 trillion yuan, an increase of 2.9 trillion yuan over the previous year.

In short, whether it is to increase the deficit ratio or increase the scale of bond issuance, it is like driving uphill and stepping on the accelerator. With confidence and determination and method, I believe that these fiscal funds will play a more leverage role and help our country's economy improve and improve!