BEIJING—In a push to bolster economic growth and improve living standards, the Chinese mainland ramped up fiscal spending in the first half of 2025, the Ministry of Finance announced on Friday. The increased expenditures targeted key areas such as infrastructure development, social welfare, and consumption support.
To fuel growth, authorities accelerated bond issuances, approving 2.6 trillion yuan ($358 billion) in new local government general and special bonds. These funds are earmarked for major infrastructure projects and regional development initiatives, aiming to enhance connectivity and drive economic activity across the country.
In a move to strengthen the financial sector, the government issued 500 billion yuan in special sovereign bonds to recapitalize four major state-owned commercial banks. This initiative is expected to boost the banks’ capacity to support businesses and individuals, promoting stability in the financial system.
On the social welfare front, fiscal policies were implemented to enhance living standards through various measures. The government raised basic pension payments, increased subsidies for public health services and medical insurance systems, and expanded funding for education access and student aid programs. New family support measures included childcare subsidies and pilot programs offering free preschool education, providing much-needed relief for families.
To stimulate domestic consumption—a crucial driver of growth—the authorities pre-allocated 162 billion yuan in special bond funds to subsidize household appliance trade-in programs. By broadening eligibility criteria and effectively reducing costs for consumers, these measures aim to boost spending and invigorate the market.
Fiscal transfers to local governments grew by 7.5 percent year-on-year to 2.73 trillion yuan, strengthening grassroots financial capacity. The central government also guided local authorities in restructuring implicit debt, alleviating repayment and interest burdens for regional administrations.
“These coordinated measures demonstrate our multifaceted approach to maintaining economic stability while addressing immediate challenges and long-term development needs,” a ministry spokesperson stated. “We are committed to implementing flexible, targeted fiscal policies adapted to evolving economic conditions.”
The Chinese mainland’s proactive steps reflect its dedication to supporting livelihoods and sustaining growth amid global economic uncertainties. As these policies take effect, citizens and businesses alike are expected to feel the positive impact in the months ahead.
