China is stepping up its game to boost economic growth with a more proactive fiscal policy. Finance Minister Lan Fo’an announced on Thursday a series of key measures aimed at enhancing the nation’s financial strength and supporting crucial sectors.
The new policy focuses on five main areas: increased deficit arrangements, intensified expenditure, expanded government bond issuance, higher transfer payments, and reinforced support for essential industries.
This year, China has set its fiscal deficit target at 5.66 trillion yuan ($780 billion), representing about 4 percent of its gross domestic product (GDP). This marks a significant increase of 1.6 trillion yuan from last year. The national public budget expenditure is expected to rise by 4.4 percent, reaching a total of 29.7 trillion yuan.
Government bond issuance will see a substantial boost, scaling up to 11.86 trillion yuan. Additionally, central-to-local transfer payments are set to increase to 10.34 trillion yuan, providing more resources to local authorities.
Minister Lan emphasized that critical sectors like education, social security, employment, science and technology, healthcare, and housing will receive reinforced support. Expenditure on science and technology is projected to climb by 8.3 percent, surpassing 1.2 trillion yuan, signaling China’s commitment to innovation and development.
“The Chinese central government has sufficient reserve tools and policy space to address potential internal and external uncertainties,” Lan stated, highlighting confidence in the nation’s economic resilience.
These measures aim to strengthen the economy and ensure stability amid global challenges, reflecting China’s proactive approach to fostering growth and supporting its people.
