Xi Jinping has recently personally emphasized “living a tight life”. Against the background of the economic downturn and even civil servants having to cut their salaries, Xi’s warning seems particularly harsh. The picture shows a file photo of the Central Bank of China. (Mark Ralston/AFP)
[The Epoch Times, November 08, 2023](Reported by Epoch Times reporters Ning Haizhong and Luo Ya) The leader of the Communist Party of China, Xi Jinping, recently personally emphasized that he should always adhere to the idea of ”living a tight life”. Against the backdrop of an economic downturn and even civil servants having to cut their salaries, Xi’s warning seems particularly harsh. During the same period, a topic in mainland China that claimed that salary cuts for civil servants would trigger a vicious cycle caused heated discussion.
Experts believe that although the CCP has been talking about “tightening life” in recent years, Xi Jinping’s current background is different, showing that the economic problem is extremely serious. Although civil servants dare not openly resist salary cuts, they will arbitrarily collect wages or lie flat. The CCP is now riding a tiger and is unable to get down.
Xi Jinping held a meeting of the Shenzhen-Shenzhen Reform Commission and called for “tightening our lives”. Experts pointed out that the problem is serious
The Xinhua News Agency of the Communist Party of China reported that Xi Jinping chaired a meeting of the Central Committee for Deepening Reform on the 7th and emphasized improving the state-owned capital operation budget system. The meeting stated that budget work must always adhere to the idea of ”living a tight life” and eliminate extravagance and waste.
American economist David Huang told The Epoch Times on the 8th that the meeting of the Central Committee for Deepening Reform was mainly aimed at the extravagance, poor supervision, and budget chaos of state-owned enterprises. Ask them to live a tight life. “China’s local finance is the same as state-owned enterprises. Financial problems are now very serious, reflecting the current unsatisfactory economic situation, so expenditures must be reduced.”
Mainland lawyer Huang Wei (pseudonym) told The Epoch Times on the 8th: The CCP’s meeting actually told everyone that the economy has almost stagnated and the government has no money.
“In the past few years, especially in the three years since the epidemic, we have clearly felt the rapid decline (of the economy). Now the collapse of companies is too obvious. It is easy to see the stores on the street, and they have written transfers and leases. “
Wang He, an expert on China issues, told The Epoch Times on the 8th that China’s economy is already in very bad shape and there are big holes in fiscal revenue.
He believes that although the Chinese Communist Party authorities have been talking about “living a tight life” for several years, currently only judging from official economic indicators, the gap between fiscal revenue and expenditure is getting wider and wider, and debt is also very troublesome. In particular, local government debt has become a bottomless pit, giving the authorities a huge headache.
According to Caixin’s April China Fiscal Situation Report, the gap between China’s general public finance revenue and expenditure has widened, with the overall situation showing “more revenue than expenditure”. In 2022, the gap between general public finance revenue and expenditure will reach 5.7 trillion yuan (RMB, the same below), an increase of 1.7 trillion yuan from the previous year.
Data from the Ministry of Finance of the Communist Party of China show that from January to September, the national general public budget revenue was 1.66 billion yuan, and the national general public budget expenditure was 1.97 billion yuan. The fiscal gap reaches 3.1 trillion yuan.
According to data released by the Ministry of Finance of the Communist Party of China, as of the end of September 2023, the national local government debt balance was 38.8 trillion yuan.
On October 24, the Sixth Meeting of the Standing Committee of the National People’s Congress of the Communist Party of China passed a resolution approving the State Council’s issuance of additional treasury bonds and the 2023 central budget adjustment plan.
The Chinese Communist Party’s finance will issue an additional 1 trillion yuan of 2023 government bonds in the fourth quarter of this year. All the additional government bonds will be arranged to local governments through transfer payments. 500 billion yuan is planned to be used this year and 500 billion yuan will be carried forward for use next year. While increasing the issuance of national debt, the national fiscal deficit will also increase significantly.
In recent years, the CCP has repeatedly asked governments at all levels to “tighten their belts” and be prepared to “live a tight life” for a long time, saying that this is a long-term policy. Various localities have also introduced relevant policies.
According to the CCP’s annual local government budget report, China’s provinces spent at least 352 billion yuan on epidemic prevention and control alone in 2022. Governments across the country are in a serious financial crisis. There are reports of salary cuts and salary delays for civil servants in many places. Even the public security system used to “maintain stability” has delayed salary payments. Many places have begun to eliminate non-staff personnel from public institutions.
Ms. Yan from Hangzhou told an Epoch Times reporter on November 4, “It’s true that civil servants are cutting their salaries. Once when I was chatting with street workers, they said that they can’t even pay their wages now. The land can’t be sold, and foreign companies are If we withdraw, the government will have no money!”
A dissident in Yixing, Jiangsu, told an Epoch Times reporter on November 4, “I was detained during the Asian Games. When chatting, the political security staff said they didn’t know where their salary would be next month. The government is very picky about everything now. Funds for stability maintenance are also insufficient.”
It is worth noting that official information from the Chinese Communist Party shows that despite frequent salary cuts for civil servants, the number of civil servants is still expanding this year.
According to a report on October 25 by the official media China News Service, this year’s civil service recruitment examination plans to recruit 39,600 people, an increase of 2,500 people year-on-year, and an enrollment expansion of approximately 6.7%. The positions recruited are mainly concentrated in the taxation, customs, railway police, entry-exit and border control stations and other systems. Among them, the National Tax Service is still the “largest recruitment company” with 10,063 positions.
Wang He told The Epoch Times on October 25 that customs and taxation are departments that can cooperate with the CCP in searching for money. The CCP’s expansion of recruitment in these positions can bring greater benefits to it.
In addition, Xi Jinping claims to put an end to extravagance and waste, but the CCP has recently held summits such as the “One Belt, One Road” forum and continues to spend money on foreign countries, which has attracted criticism. Taiwanese scholar Dong Liwen recently said that the government’s primary responsibility is to take care of its own people. The CCP has allowed China’s unemployment rate to continue to rise, resulting in a number of serious economic and social problems. He questioned why the CCP “doesn’t take care of its own people but wants to wreak havoc around the world.” currency”.
“Salary cuts for civil servants will trigger a vicious cycle” has become a hot topic. Analysis indicates that the officialdom may now be flat.
On November 8, a topic “Expert: Civil servant salary cuts will trigger a vicious cycle” sparked heated discussion on the mainland Internet.
The article quoted “experts” as saying that salary cuts for civil servants may trigger a vicious cycle, which will specifically affect the quality of life and morale of civil servants; affect the key role of civil servants as government executors and service providers; and long-term salary cuts may weaken the work of civil servants. Motivation affects the government’s ability to govern and civil servants’ trust and loyalty to the government; dissatisfaction may spread within the government, further reducing work efficiency, forming a negative atmosphere, etc.
Many netizens are mocking this topic:
“We do not support salary cuts for civil servants, but we do support layoffs of civil servants, directly lay off half of them, and the rest will earn double the current salary, and then we will eliminate those at the bottom.”
“Good guy, are you planning to fire half of the people working here?”
“Support cutting civil servants in half, getting rid of those who are not doing the right thing, and doubling their salaries. Such measures are stronger than anything else.”
“How many people are struggling to become civil servants, and every year tens of thousands of people compete for one position in the public examination. How can this be a vicious cycle? The day no one takes the civil service exam, it means it’s time to raise wages.”
“If their salaries are not reduced, it will affect everyone’s quality of life and family stability.”
“There won’t be much enthusiasm if we don’t cut wages.”
“Typical high-end black.”
Wang He said that it is impossible for a government to cut the salary of civil servants unless it is a last resort, because the impact is indeed very powerful. “If everyone lies flat and does not work for you, how can your country run? But it Reaching this point shows that the current financial situation is very tight.”
Civil servants are already experiencing salary cuts, so why are people still flocking to take the civil service exam and why are there no large-scale resignations of civil servants? Wang He analyzed that this shows that even if the salary of a civil servant is reduced, he is still much better than ordinary people. Therefore, he will not abandon his civil servant position. At most, he will complain. Therefore, there is no possibility of something like the civil servant strike abroad.
“But if everyone is dissatisfied, they will impose arbitrary fines and fees, and each will use their own power to expropriate, which will make the social order more chaotic. First, enterprises will be hit, and private enterprises and foreign businessmen will escape faster, which forms a vicious circle .”
Huang Wei said that even officials had to lie down and the economy could not recover, and a subversive crisis might quickly appear in China’s politics.
(Epoch Times reporter Li Xi contributed to this article)
Editor in charge: Fang Xiao#
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2023-11-08 13:06:23
