After thinking for a while in the office, Chen Xing asked his secretary, Yu Zhiyuan, to invite Kong Zhengliang over.
The morning passed quickly. Chen Xing and Kong Zhengliang gradually reached a consensus on the details of the financial support for the cultural enterprises. In general, three of the ten places would be allocated to the private cultural enterprises, and the financial support for the private enterprises would not be given in vain. After all, the state's money would not be given to the private enterprises for no reason. As for the allocation of the financial plan, Chen Xing and Kong Zhengliang had also finalized a regulation.
After reaching an agreement with Kong Zhengliang, Chen Xing was slightly relieved. As the two leaders of the Municipal Government, as long as they reached an agreement, no one else would object.
Alas, the city's financial situation this year was not optimistic. Otherwise, they could have taken out more funds. After the discussion, Kong Zhengliang looked slightly relaxed. He leaned back on the sofa and rested. He had talked with Chen Xing for more than an hour, and he was a little tired.
Secretary Fu wanted to ensure that all the key projects had sufficient funds. He also wanted to set aside a portion for emergency use. Otherwise, they would not be so short on funds. Chen Xing smiled. Fu Jianjia wanted to set aside a large amount of funds for emergency use. After learning about the situation, Chen Xing was actually quite dissatisfied. However, the former mayor had been like this, so he could not say anything. Furthermore, he could not jump out and oppose Fu Jianjia.
Secretary Fu was now investigating the photovoltaic project, which was another money-burning investment project. If he really invested in it, it would cost more than one or two billion yuan. Therefore, Secretary Fu wanted to set aside a large amount of funds. Kong Zhengliang shook his head helplessly. He knew more than Chen Xing, the new mayor. As the leader of Jiangcheng City, Fu Jianjia's authority in the city was untouchable. Therefore, even if Fu Jianjia did not specifically control the financial power, they still dared not disobey him. As long as Fu Jianjia gave the order, no matter how much funds there were, the city would have to set aside the funds for the project.
Photovoltaic project. Hearing Kong Zhengliang's words, Chen Xing murmured to himself. If Fu Jianjia decided to invest a large amount in this project, it would cost a lot of money.
Chen Xing and Kong Zhengliang looked at each other at the same time. Both of them smiled bitterly. Chen Xing had just arrived in Jiangcheng City, but he had already felt the generosity of Fu Jianjia, not to mention Kong Zhengliang, who had worked in the city for many years.
In fact, Chen Xing did not object to Fu Jianjia's large-scale projects. In fact, he even approved of some of them. After all, the government invested heavily in some public infrastructure projects, which was also needed to stimulate economic growth. In a situation where domestic demand was weak, the government's investment was particularly important. Otherwise, they could only watch the economic growth decline. This was an outcome that no one could tolerate, even if Chen Xing was the mayor. If Jiangcheng City's economic development did not maintain the trend of growth, and instead fell into a recession, Chen Xing would not be able to accept this outcome.
Of course, it was still too early to say that Jiangcheng City's economy would decline. However, in recent years, Jiangcheng City had indeed been overly reliant on real estate and the government's public infrastructure investment. In general, real estate and government investment had become the two main factors that stimulated the development of Jiangcheng City. The private economy, which had a glorious period in the past, had really fallen into a recession in the past two to three years.
After a short silence, Chen Xing said, "Zheng Liang, the development model of Jiangcheng City has fallen into a vicious cycle. If this continues, it will be like drinking poison to quench thirst, and it will not be good for the development of Jiangcheng City.
Although we all know that the current development model is not right, we still have to continue. This is a dead knot, and it will not be easy to untie it. I think Mayor, you also cannot accept the result of Jiangcheng City's economic growth stagnating or even going backwards. " Kong Zhengliang shrugged his shoulders. The two of them were now chatting casually, and Kong Zhengliang spoke casually.
You are right, this is a dead knot that will not be easy to untie. Chen Xing sighed. Real estate and government investment had become the two main factors of Jiangcheng City's development. However, these two factors complemented each other. If the government wanted to invest in large-scale infrastructure projects to stimulate economic growth, it had to ensure that the finance had enough money. As long as the finance had enough money, the government would be able to invest in large projects. But where did the finance come from? In addition to normal taxes, mortgage loans from the government from the bank, and capital operations from the State Investment Bank, the remaining major source of income was land income.
In recent years, the proportion of land finance in the city's finance had been increasing, from 10% to 20% at the beginning, and now it was more than 30%. Land finance accounted for more than one-third of the city's finance. This meant that once the real estate market was in a slump, the city's finance would immediately be affected.
Just as Kong Zhengliang said just now, this was a dead knot that would not be easy to untie. To put it bluntly, the development of the city had been hijacked by the real estate industry. If they wanted a lot of money for large-scale infrastructure projects, the government had to be rich. In the past two years, the business was in a slump, and there was no need to think about increasing taxes. They could only think of ways from land finance. What should they do? The city had to auction more land, or there would be no way to increase income. However, the real estate market was in a slump, and the enthusiasm of real estate companies to buy land was dampened. If the land could not be auctioned or sold at a high price, the city would be the first to lose its patience. Therefore, they could only introduce policies to save the city.
Now, some people said that if the real estate market of Jiangcheng City sneezed, the city would catch a cold. Kong Zhengliang smiled and shook his head.
Although these words were a little exaggerated, they were right. Chen Xing smiled.
That's right. Therefore, even if we knew that we were hijacked by the real estate market, we still had to be willing to get on the carriage of real estate. Otherwise, it would affect the investment of the government, and the economy of Jiangcheng City would definitely slow down. In the past two years, the proportion of economic growth driven by government investment has been increasing. Kong Zhengliang said.
You are right. Therefore, we have to study how to revitalize the private economy of Jiangcheng City. I have checked the information. The years when the economy of Jiangcheng City developed the fastest were also the years when the private economy was the most active. Therefore, the private economy is closely related to the development of Jiangcheng City. Chen Xing said.
Sigh, now the economy is in a slump, and the international environment is also not good. In the past two years, many local export private enterprises have closed down. In the face of such a situation, there is not much that the government can do. Moreover, this is actually a kind of adjustment of the survival of the fittest in the market.
I agree with your point of view. Not to mention private enterprises, even some state-owned enterprises have closed down because they couldn't survive the economic winter. In essence, this is the market eliminating backward production capacity. Therefore, we can't go against the trend. The enterprises that should close down should close down, and the production capacity that should be eliminated should be eliminated. But what about after the closure and elimination? Our Jiangcheng City has not cultivated new industries in time. This is also the biggest problem of our Jiangcheng City. We lack fresh blood.
Chen Xing's words shocked Kong Zhengliang. He looked at Chen Xing thoughtfully. So, Mayor, you are vigorously promoting the development of the cultural industry because you are optimistic about the future of this industry?
Yes, and I have a bold idea. In the future, the cultural industry will become the main pillar industry of Jiangcheng City. Chen Xing said in a loud and clear voice.
Kong Zhengliang looked at Chen Xing in surprise. With the current scale of the cultural industry in Jiangcheng City, it would be extremely difficult to become a pillar industry. Even if the cultural industry had a bright future as a sunrise industry, could it take up such a big responsibility?
Kong Zhengliang didn't quite agree with Chen Xing's idea. However, he admired Chen Xing's attitude and aggressiveness. After working with Chen Xing for these days, Kong Zhengliang got along well with Chen Xing. This also made Kong Zhengliang confident that the two of them would form a team in the future. As the first and second in command of the Municipal Government, they could have differences and arguments. But as long as the ultimate goal was for the development of Jiangcheng City, there was nothing wrong with it.
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