Finance minister: China will implement a more proactive fiscal policy next year

China will implement a more proactive fiscal policy next year, with sustained and intensified efforts to deliver a well-coordinated package of measures aimed at ensuring economic stability and driving growth, said Finance Minister Lan Fo'an on Monday.

He made the remarks at the national work conference for the fiscal system held in Beijing from Monday to Tuesday, during which he summarized the achievements of the fiscal system in 2024 and outlined its key tasks for 2025.

"First, we will increase the fiscal deficit ratio, increase spending, and accelerate expenditure progress. Also, we will issue larger-scale government bonds to provide stronger support for stabilizing growth and optimizing economic structure," said Lan.

Lan highlighted improving spending structures and ensuring precise allocation, with a stronger focus on enhancing people's livelihoods, boosting consumption, and fostering long-term growth.

"We will continue efforts to prevent and mitigate risks in key areas, ensuring stable and sustainable fiscal operations," Lan added.

It is really important to prioritize the "three guarantees" — safeguarding basic living needs, ensuring salary payments, and maintaining grassroots operations — by increasing fiscal payment transfers to local governments to strengthen their financial capacity, he said.

Lan emphasized that in 2025, the ministry will remain focused on expanding domestic demand, supporting the development of a modern industrial system, and advancing efforts to safeguard and improve people's well-being.

Key priorities will also include supporting the integrated development of urban and rural areas, fostering balanced regional growth, advancing ecological progress, and promoting high-level opening-up.

"To expand domestic demand, we will vigorously boost consumption and increase personal income through multiple channels," said Lan.

"Also, including enhancing support for consumer goods trade-in programs, improving the financial guarantee mechanism for public cultural services, and advancing a new round of initiatives to strengthen the network of national comprehensive freight hubs can boost more social investment through government investment," he said.

Lan said that supporting the development of a modern industrial system requires a strong focus on enhancing technological innovation, fully backing breakthroughs in key core technologies, accelerating industrial transformation and upgrading, and thoroughly implementing reward and incentive policies for "little giant" enterprises, or those specialized and innovative small and medium-sized enterprises.

"We will continue to support high-level opening-up, actively participate in global economic governance, and engage deeply in discussions on multilateral and bilateral financial and economic issues," said Lan.

He added that efforts will also be made to refine tariff and import-export tax policies while deepening cooperation with countries and regions participating in the Belt and Road Initiative.

Lan said that the ministry will prioritize stabilizing employment, support the development of a strong education system, advance rural revitalization in an orderly manner, promote new urbanization, and foster coordinated regional development.

Additionally, continuous efforts to strengthen ecological conservation and restoration, steadily advance carbon peaking and neutrality goals, and drive green and low-carbon transformation in key industries and sectors will remain essential priorities for the coming year, Lan added.

He also said the year 2024 has witnessed China's fiscal system making substantial achievements.

For instance, the fiscal authorities have intensified the implementation of both stock and incremental fiscal policies, exerting efforts on both the supply and demand sides to accelerate the implementation progress.

"We have been solidly promoting high-quality development, actively supporting building a strong nation in science and technology, advancing regional coordinated development, and supporting the unswerving fight against pollution," Lan said.

As for promoting the implementation of initiatives that benefit people's well-being, the fiscal authorities have carried out actions such as aiding enterprises in maintaining and increasing employment, fostering the high-quality development of education, and enhancing the national minimum standard for basic pensions for both urban and rural residents.

Additionally, they are committed to directing financial resources to local governments to secure the foundational "three guarantees", safeguarding basic living needs, ensuring salary payments, and maintaining grassroots operations, at the grassroots level, Lan said.

The fiscal system has also taken more forceful measures to prevent and resolve risks in key areas, Lan said, adding those measures include advancing the implementation of the package plan for local governments to resolve debt risks, supporting the reform and transformation of local government financing platforms, and promoting stability and recovery in the real estate market.

Moreover, the ministry has been deepening reforms in the fiscal and taxation system while strengthening fiscal management and supervision, and continuously enhancing international financial and economic exchanges and cooperation among others.

Representatives from the ministry, including those from local branches, attended the meeting. Xu Hongcai, deputy head of the financial and economic affairs committee of the National People's Congress, and representatives from other government departments, also attended the meeting.

Yin Mingyue contributed to this story.