Chapter 193: Deficit

It is necessary to truly understand the fiscal relationship between the local and central governments.

It is necessary to return to the essence of money.

It is important to make clear the premise that at the national level, money does not represent the wealth of the country in its entirety.

Because currency can be reprinted repeatedly.

And paper money is credit money, there is no legal gold content, and labor cannot be purchased, then the value of money does not exist.

More money is put into the market every year, so at the national level, there is no question of losing money.

It's over if you don't have money to print.

But what is the purpose of printing money?

So what is the wealth of the nation? industry, construction, real estate, products.

To promote the construction of capacity, the central government allocated 1 billion yuan to build a highway, and allocated it to you, and when the road is repaired, the goal will be achieved, and this road is the wealth of the country.

These 1 billion currencies can also generate 5 billion profits, which will create more private capital.

Private capital generates repeated purchasing power, and the profitable sector builds a house, a real estate, a new factory, and provides employment for 500 people, and the value of the products produced by the factory is the wealth of the country.

This is modern macroeconomics, the famous economist Keynes's theory of supply and demand, a word often heard on news broadcasts, is called, stimulating domestic demand.

In the decades since the reform and opening up, tens of billions of dollars of currency have been put in.

Eventually, more than a million square kilometers of the city were built, and the monetary relations were harmonized, and everything we now enjoyed, the rows of high-rise buildings, the endless sea of products, and the abundance of people living and working in peace and contentment.

All of them were stimulated by the state's adoption of economic policies.

The way a country measures GDP is not a statistical currency.

GDP (Y) = Consumption (C) + Investment (I) + Government Purchases (G) + Net Exports (NX).

The vast majority of countries in the world use the production method, statistics of GDP, primary industry agriculture, secondary industry, tertiary industry services, when counting the GDP of a prefecture-level city, the calculation is the growth of these industries, within a fiscal year, how many new construction, how many products produced, how much economic value obtained, during his tenure, there is a building completed, can increase GDP, because he has a large scale of investment, this is called political performance, and then subtract the value of intermediate investment, to get the value of GDP growth.

After understanding the value of money, you can understand a truth.

Money is in the hands of the state, not wealth, but a means of circulation.

At present, all countries in the world, including developed countries, are losing money on the finances of the central government.

This is called deficit finance.

Deliberately.

The state's annual fiscal revenue will continue to be allocated to governments at all levels, and it will be excessively allocated.

For example, the United Kingdom.

For example, this year's British fiscal revenue, including revenue, as well as the profits of state-owned enterprises, including telecommunications, oil, railways, and minerals, the total amount of money earned by these sectors is 5 trillion.

Of course, it is necessary to retain a certain amount of activity costs, and the rest should be delegated through the public budget, and if there is not enough money, it will be printed, and the 5 trillion yuan of fiscal revenue will be put in, and if the money is not enough, the currency will be printed, and the central government will always be in a state of loss.

This can ensure that the total amount of money in the market is increasing, not decreasing.

If there is enough money, there will be more labor force that can be mobilized, and the market will be vigorous, and the demand will be more, and the circulation speed of money will be accelerated.

This is good for economic growth.

However, in order to ensure that the deficit is in a healthy amount, first of all, the proportion of the fiscal deficit in GDP should not exceed 3 percent, for example, the total GDP of a fiscal year is 30 trillion yuan, and 3 percent is 900 billion yuan, so it is normal for the national treasury to have a deficit of 900 billion yuan.

The second is the fiscal deficit, which cannot exceed 15 percent of total fiscal expenditure.

If it exceeds 15%, the state will not print more currency, and the financial pressure will be reduced through the issuance of government bonds.

For example, the fiscal revenue is 5 trillion yuan, the expenditure is 5.5 trillion yuan, and the fiscal deficit is 500 billion yuan, which is 1.4% of the total GDP and 10% of the total fiscal expenditure.

The most important thing for the state to control the currency is to curb inflation.

In the event of war and turmoil, it is necessary to urgently overprint currency in order to have the ability to take risks.

For example, when Lao Jiang was most uncomfortable, he put a large amount of currency, and finally depreciated the currency to buy a loaf of bread, and it took a sack of money to use it, which meant a complete collapse of the finances.

At present, there is a saying in China's finance and economics that six provinces and one city feed the whole of China.

Beijing, Guangdong, Zhejiang, Jiangsu, Fujian, Shenzhen, Shanghai, only these few are profitable.

All other provinces, municipalities and autonomous regions are in a state of fiscal deficit.

Even Chengdu, Sichuan is at a loss.

There is no comparison at all, and the import and export of the coastal areas alone is doomed to vastly different fiscal revenues.

And what about the current inland prefecture-level cities?

At this time, state-owned enterprises were affected by the market, the structure was bloated, unable to keep up with the trend of the times, and could not compete with private enterprises.

The manufacturing industry in the inland provinces is seriously lagging behind, and the regional development is unbalanced.

So the current local government is really out of money.

What about Shaanxi?

To be on the whole, the geographical location of Shaanxi is quite good, to the basin has a basin, to the sand has sand, to the hills and hills, the Yangtze River and the Yellow River all pass through here, and is in the heart of the position, the development time is still earlier, there are also certain advantages in import and export, Shaanxi introduced the red Fuji, every year also a large number of exports.

But Hanzhong is indeed embarrassed.

Located at the throat of Sichuan and Shaanxi, the transportation is inconvenient, and the financial situation seems to have formed a dilemma.

However, it is rich in products, located between the Qinling Mountains, Bashan and Shushui, and the annual fruit output is quite large.

It can be seriously unsalable.

The German fully automatic production line, OEM production, or the provincial government in order to pull the Hanzhong Economic Development Zone, over-assigned, the profit is already low, and it has to bear the pressure of additional freight, so it can't make much money.

In recent years, the development of agricultural products is the pain in the heart of Deputy XX Chief Zhou, the harvest year is not abundant, it is obviously a bumper harvest year, the price of fruits has fallen, and the income of fruit farmers cannot be raised in any case.

So the canning industry is imperative.

The Lvye Food Factory in Hanzhong is also an old state-owned factory, and the local finance took the initiative to take it and looked for a way out.

But after all, in this era, information lags behind, education levels cannot keep up, and even local officials are often unable to do anything.

And now, the 1,600 tons sold on the spot today have already broken out of the predicament for them.

If this news is transmitted back to Hanzhong, it will definitely cause a huge earthquake in the municipal party committee.

After all, Deputy Director Zhou only grasps the overall situation and doesn't know the details, so I feel that I have benefited a lot from today's class.

Director Liu, the feeling is more profound than that of Deputy XX Director Zhou.

He also climbed up step by step from the grassroots level, and he was clear about local affairs, but he was a complete layman when it came to imports and exports.

On-site order of 1600 tons?

What kind of impact is it for Director Liu?

That German production line could only solve about one-third of the sluggish fruit flow in Hanzhong.

Helpless, they can only bite the bullet and launch their own brands, but the marketing methods are backward, and there is no brand value at all, only in Hanzhong local sales, nearby surrounding counties and cities, the goods can not be sold.

Last year, for a whole year, the total sales of canned food in the Green Field Food Factory were only more than 200 tons.

What surprised him even more was the number of one-time orders.

Everyone else is talking about tons.

The contract formulated by Fan Yang starts at 10 tons, and if it is less, it will not be sold.

What's even more surprising is that these merchants don't think there's anything wrong, they are all more than 10 tons to order.

There is also a customer, calculated directly with money, and ordered 1 million dollars on the spot.

Locally, sales have always been about boxes.

A sub-distributor called and ordered a few hundred boxes at a time, which could make the factory director happy for a long time.

Not a heavyweight at all.

At 11 o'clock in the evening, everyone was so busy that they didn't eat, and no one had the heart to eat, and the on-site ordering was too hot.

Gao Lu and Tang Changgong had no intention of looking any further.

I went downstairs, bought two bottles of water and bread at a small shop on the side of the road, turned a street, and there was an imported Mercedes-Benz S600 parked on the side of the road, worth more than 3 million tiger head Ben.

This is the car of Gao Lu, and the two of them got into the car: "It's an eye-opener, amazing, this person is a talent, even I admire it." Gao Lu said.

Tang Changgong also looked appreciative: "Yes, we will have one more strong competitor in the future, but this is also a good thing." ”

In terms of foreign trade, peers are not necessarily enemies.

"Let's make an appointment in two days to see what this man's heart is, and if he has a good attitude, let's take him on board." ”

Tang Changgong was slightly stunned: "So fast? His qualifications are not enough, right? Do the other councils agree?"

"Qualifications don't matter, ability. ”

Tang Changgong thought for a while and said with a smile: "Also, on the first day of opening, the order was 15 million, and this ability is indeed enough." ”

For the figure of 1,600 tons, Gao Lu and Tang Changgong are not sensitive.

The basic nature of import and export trade is determined, and the quantity is not ordinarily large.

Just kidding, thousands of mountains and rivers, crossing the border between the two countries, just the formalities have to make a big head, hard work to trade, come to buy a few thousand yuan, even if tens of thousands of dollars are all for fun, really travel?

Import and export trade, on the ton is pediatric, generally on the cabinet.

The two sides asked the price, didn't open and close their mouths to come to two catties, wow, how many cabinets do you want?

A container is a container.

Ruler height cabinet, these three common specifications.

The smallest 20-foot container, 6 meters long, 2.4 meters wide and 2.4 meters high, can also hold at least 20 or 30 tons.

The 40-foot high container is packed densely enough to fit 100 tons.

And large trading companies, with a large volume of goods, are accustomed to taking hundreds of containers at a time and loading several ships.

For Gao Lu and Tang Changgong, 1,600 tons can't get into their eyes.

They pay attention to the essence of popular products, and admire Fan Yang's ability to grasp the price.

Generally speaking, the larger the volume, the lower the profit of the monomer.

There is a saying that a 3 percent profit can drive a businessman crazy.

Generally, there is a 3% profit that can be sold, which is also the consensus of Lianyungang's foreign trade circles.

It's all about one lip service, raising the price in half, and the profit is 100 percent?

It's horrifying.

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