China’s finance ministry vowed to step up fiscal spending and government bond issuance in 2025, providing stronger support to bolster economic stability.<\/p>\n\n\n\n
The country will adopt a more proactive fiscal policy next year, and ensure the fiscal policy is continuously forceful and impactful, Finance Minister Lan Fo’an made the remarks during a two-day national fiscal work conference that ended Tuesday.<\/p>\n\n\n\n
The fiscal policy stance aligns with the announcements made at the recent tone-setting Central Economic Work Conference. During the conference, policymakers decided to implement a “moderately loose” monetary policy in 2025, a significant departure from the “prudent” policy of the past 14 years.<\/p>\n\n\n\n
This comes as China gears up to navigate economic headwinds both at home and abroad, and sustain a steady and robust recovery.<\/p>\n\n\n\n
Lan said the country will set a higher deficit-to-GDP ratio in 2025, increase the intensity of fiscal spending, ensure faster deployment of funds, and optimize the structure of fiscal spending, with more focus on improving people’s well-being, promoting consumption and sustaining growth momentum.<\/p>\n\n\n\n
According to a statement released after the fiscal work conference, the country’s key fiscal priorities next year will include boosting domestic demand, building a modernized industrial system, improving people’s well-being, supporting urban-rural integrated development, building an ecological civilization, and promoting high-standard opening up.<\/p>\n\n\n\n
The country will work continuously to prevent and defuse risks in key sectors and continue to increase transfer payments to local governments, Lan said.<\/p>\n\n\n\n
He noted that the country will also step up efforts to contain new increases in local governments’ “hidden debts,” and move faster to reform and transform local government financing platforms.<\/p>\n\n\n\n