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China plans to maintain a more proactive fiscal approach this year, according to the Ministry of Finance, focusing on strengthening the domestic market and fostering technological independence.
A recent report highlights efforts to develop new growth engines, advance urbanization, promote regional coordination, support green transformation, and improve financial management practices.
Measures are also being introduced to relieve citizens’ financial burdens. This includes increasing per capita subsidies for urban and rural residents’ basic medical insurance, raising pension benefits, and establishing a system for childcare subsidies.
On March 14, the State Council announced an annual budget plan, revealing that China will issue approximately 11.89 trillion yuan (about 1.7 trillion USD) in new government bonds to boost fiscal spending. This will raise total expenditures of the national budget and government funds by 4.6% compared to last year, aiming to stimulate demand and support steady growth.
The report shows that despite stable fiscal operations last year, revenue from the general public budget and government funds fell short due to various factors. To maintain spending levels, the government increased borrowing—successfully issuing 1.3 trillion yuan (around 188.7 billion USD) in ultra-long-term special treasury bonds and 4.4 trillion yuan (approximately 637 billion USD) in new local government bonds to finance over 48,000 projects.
Additionally, 500 billion yuan (about 72.6 billion USD) in special bonds were issued to bolster the core capital of major state-owned banks, and policies were introduced to offer interest subsidies for personal consumption loans and loans to service sector businesses.
Responses to external trade pressures included tariffs against the United States, alongside ongoing economic and trade discussions between the two nations and efforts to reduce tariffs. These actions have positively influenced market outlooks both domestically and internationally.
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