China Signals Stronger Fiscal Support Amid Growth Pressures
This article contains AI assisted creative content
China will maintain and step up its proactive fiscal policy in the coming months, focusing on boosting consumption, channeling more funds into public services, and accelerating investment in new growth drivers, Finance Minister Lan Fo'an told lawmakers on Wednesday.
Speaking at the 17th session of the Standing Committee of the 14th National People’s Congress, Lan said fiscal operations have remained broadly stable so far this year. From January to July, general public budget revenue stood at RMB 13.58 trillion (up 0.1% year-on-year), while expenditure reached RMB 16.07 trillion (up 3.4%).
A core part of this year's fiscal strategy has been measures to stimulate household demand. Policies include subsidized loans for consumers and service-sector businesses, support for care-dependent elderly citizens, and expanded subsidies for scrapping vehicles and upgrading appliances — now covering digital products such as smartphones.
On the investment side, issuance of ultra-long special treasury bonds began a month earlier than last year, with RMB 761 billion already raised by end-July. Proceeds are being directed to infrastructure projects and initiatives supporting innovation and green development. Special local government bonds and closer fiscal-financial coordination will also be used to crowd in private investment, Lan said.
TWO
Lan acknowledged the need to address risks in key areas, particularly debt management and financial stability, while continuing reforms to improve fiscal governance. The government has stressed “living within tight budgets” as part of its broader discipline on public spending.
THREE
Looking forward, fiscal policy will concentrate on stabilizing employment and trade, supporting new growth engines, and expanding access to public services. More resources will be devoted to social sectors such as eldercare and childcare, with the aim of unlocking long-term consumption potential.
Lan emphasized that fiscal tools will be applied with both “consistency and flexibility,” noting that stability is essential but policies must adapt to shifting conditions. The goal, he said, is to use the “certainty of high-quality development” to counter economic headwinds.
First, please LoginComment After ~