China's Ministry of Finance plans to adopt a more proactive fiscal policy in 2025, as part of China's efforts to achieve high-quality economic development, said Vice Minister of Finance Liao Min on Friday at a press conference in Beijing.
Officials briefed the media on achievements of China's high-quality economic development, and announced detailed plans for a more proactive fiscal policy in 2025, in line with the Central Economic Work Conference's directives.
Liao said that a more proactive fiscal policy is primarily reflected in the three aspects of higher intensity, greater efficiency and better timing.
For its intensity, the policy will fully utilize available policy space to enhance counter-cyclical adjustments, according to Liao. This includes increasing the fiscal deficit ratio, boosting expenditure, and raising transfer payments to local governments to ensure basic living standards. There will also be a larger issuance of government bonds, including ultra-long-term special bonds and local government special bonds.
Regarding efficiency, the policy aims to optimize expenditure structures, with a focus on improving people's livelihoods, promoting consumption, and increasing long-term growth potential.
"We will enhance support for stable employment. We aim to improve boost consumption by increasing residents' income, refining the social security system, fostering new consumer industries, improving consumption conditions and other measures. Focusing on nurturing new quality productive forces, we will also support key areas such as education, talent development, scientific research, rural revitalization, and green development. Additionally, there will be efforts to improve fiscal management to ensure effective use of all the input," he said.
According to the official, on timing, the ministry will take early actions to enhance the policy's foresight and relevance. This involves accelerating expenditure to quickly form actual spending, which will stimulate more social investment and maximize policy effectiveness.
Furthermore, the ministry will deepen fiscal and tax system reforms, continuously work on preventing and resolving risks in key areas, and ensure stable and sustainable fiscal operations.
China to implement more proactive fiscal policy: vice finance minister
