Minister of Finance Lan Fo'an articulated that China has implemented a proactive fiscal policy this year, characterized by increased funding, strong policy support, and improved coordination.
The intent is to counter short-term economic fluctuations and bolster overall economic resilience effectively.
During the current annual session of the 14th National People's Congress, the foremost legislative body in the country, it was stated that the fiscal policy will persist in adopting a proactive approach, drawing on the resilience exhibited in the previous year's growth.
"This arrangement fully takes into account the complex and profound changes in the current domestic and international situation, while also addressing the need for both counter-cyclical and cross-cyclical adjustments.”
As stated by the minister, China has consistently maintained a deficit-to-GDP ratio of approximately 4 percent along with a deficit scale totaling 5.89 trillion yuan (equivalent to $855 billion).
He mentioned that the national public budget expenditure has surpassed 30 trillion yuan for the first time, reaching a record high.
Lan pointed out that the issuance of new government bonds this year has amounted to 11.89 trillion yuan, marking the largest fiscal initiative in recent memory. This substantial effort has allowed the nation to enhance domestic consumption, maintain economic growth, and facilitate structural changes.
Furthermore, the high-ranking official remarked that disbursements from the central government to provincial governments have reached a total of 10.42 trillion yuan, marking the fourth consecutive year that this figure has surpassed 10 trillion yuan.
The finance minister emphasized the importance of coordinating macroeconomic policies and unveiled new tools that will be implemented this year to enhance domestic demand. According to him, these instruments are specifically crafted to facilitate the flow of financial resources and significant social investments into the tangible sectors of the economy, thereby magnifying the amplifying impact of government expenditures.
In 2026, the finance minister of China announced that the scale of fiscal funding in the country will achieve unprecedented levels. It was stated that the total government expenditure is projected to surpass 30 trillion yuan ($4.35 trillion) for the first time.
Additionally, the size of newly issued government bonds is expected to reach 11.89 trillion yuan, the highest amount in recent years. Central government transfer payments to local administrations are forecasted to reach a record high of 10.42 trillion yuan, marking the fourth consecutive year that the figure has exceeded 10 trillion yuan.
He also mentioned that additional financial resources will be allocated to important sectors and crucial components of high-caliber growth.
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Lan mentioned that China has designated nearly 1.3 trillion yuan for science and technology expenditures this year, reflecting a 7.1 percent increase from the previous year. He further elaborated that the total expenditure on education, social security, employment, healthcare, and housing assistance will surpass 12.4 trillion yuan.