Making Good Use of the "Toolbox" of Government Procurement


Release time:

2022-11-07

Scale is increasing, efficiency is improving, and functions are upgrading... In recent years, the term "government procurement" has frequently entered the public eye. According to the latest data released by the Ministry of Finance, the national government procurement scale in 2020 reached 3697.06 billion yuan, an increase of 390.36 billion yuan or 11.8% compared to the previous year, accounting for 10.2% and 3.6% of the national fiscal expenditure and GDP, respectively.

Behind "buy, buy," government procurement is also given more and more significance, playing an indispensable role in supporting the development of small and medium-sized enterprises, leading the green and low-carbon trend, and promoting the revitalization of rural industries. The "toolbox" of government procurement is being fully explored.

Supporting small and medium-sized enterprises

"Last year, the scale of government procurement accounted for 3.6% of GDP, indicating that government procurement is playing an increasingly important role in macro-control and its effect is becoming more and more obvious." Bai Jingming, a researcher at the Chinese Academy of Financial Sciences, said that in 2020, China was hit by the COVID-19, and the downward pressure on the economy increased. The increase in the scale of government procurement promoted the increase of total demand, stimulated the growth of supply, and played a very good supporting role in the stable operation of the economy.

The starting point of government procurement is also becoming increasingly accurate. "In recent years, the government has repeatedly emphasized the need for positive fiscal policies to improve quality and efficiency, which means that limited funds must be able to do more things, do more accurate things, and do more important things. To select the right point, first address urgent issues that need to be addressed, such as supporting green procurement, supporting the development of small and medium-sized enterprises, assisting rural revitalization, and giving priority to services to win the battle against pollution prevention and other major national decisions and arrangements." Bai Jingming said.

Supporting the development of small and medium-sized enterprises is one of the important driving forces of government procurement. At the beginning of this year, the "Management Measures for Promoting the Development of Small and Medium Sized Enterprises through Government Procurement" jointly issued by the Ministry of Finance and the Ministry of Industry and Information Technology was officially implemented. Various localities accelerated the refinement of implementation plans, and introduced more tangible support measures in terms of procurement share, payment terms, credit guarantees, etc., to more effectively support the development of small and medium-sized enterprises.

一体式液压千斤顶

For example, Anhui Province requires that the proportion of advance payments for government procurement be generally no less than 30% of the contract amount, while the proportion of advance payments for small and medium-sized enterprises can be increased to more than 50%, and the proportion of advance payments for procurement contracts related to epidemic prevention and control can be up to 100%, in order to fully mobilize the activities of micro market entities and enhance the ability of government procurement to serve small and medium-sized enterprises.

In order to alleviate the problems of slow, difficult, and expensive financing for small and medium-sized enterprises, many regions have also actively promoted the government procurement loan business and expanded financing channels for small and medium-sized enterprises. For example, relying on the "Jiqi Yintong" digital financial service platform, Jilin Province actively provides government procurement financing guarantee services for small and medium-sized enterprises. By the end of July, platform financial institutions had handled nearly 100 supplier financing needs, with loans exceeding 250 million yuan.

"Promoting the development of small and medium-sized enterprises and stimulating economic growth through government procurement has become an effective means to support the realization of national macroeconomic control goals." Wang Zecai, a researcher at the China Academy of Financial Sciences, said that more and more small and medium-sized enterprises are participating in government procurement activities. In 2020, the contract amount awarded to small and medium-sized enterprises in government procurement nationwide was 2791.8 billion yuan, accounting for 75.5% of the national government procurement scale; The contract amount awarded to small and micro enterprises is 1404.64 billion yuan, accounting for 50.3% of the contract amount awarded to small and micro enterprises.