China Announces Fiscal Policy Boost for 2025 to Fuel Economic Growth
China’s government has unveiled plans to increase its fiscal deficit and expand the use of special bonds in 2025, aiming to stimulate economic growth and recovery. Officials shared these updates during press briefings on Friday focused on the country’s high-quality economic development.
Boosting Local Development
Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance, announced that within the new quota of special bonds for 2025, local governments will have more flexibility in land use arrangements. This includes two key projects: reserving land and purchasing existing commercial housing to convert into affordable housing.
“These policy measures are designed to gradually unfold throughout 2025, supporting local economies and addressing housing needs,” Lin said.
Significant Increase in Fiscal Deficit
Liao Min, vice minister of finance, confirmed that China’s fiscal deficit will rise significantly in 2025. “In line with our growing GDP, total fiscal expenditure will increase,” Liao stated. “We are intensifying countercyclical measures to support the economy’s ongoing recovery.”
He emphasized that the fiscal policy for 2025 is proactive and focused on strengthening these adjustments while ensuring medium and long-term fiscal sustainability. “We will maintain a prudent approach,” Liao added.
Looking Ahead
Liao noted that specific policy measures will be launched after completing the necessary statutory procedures. The government aims to support economic growth while ensuring fiscal health, balancing immediate needs with future considerations.
Reference(s):
cgtn.com
