China's fiscal expenditure to reach record high in 2026: finance minister

BEIJING - China's fiscal fund allocation is expected to reach record highs in terms of total expenditure, the scale of new government bond issuance, and central government transfer payments to local governments, Finance Minister Lan Fo'an told a press conference Friday.

The country's total fiscal expenditure is projected to surpass 30 trillion yuan ($4.35 trillion) for the first time this year, while the scale of new government bond issuance is expected to hit a record high of 11.89 trillion yuan, marking the largest issuance in recent years, Lan said on the sidelines of the fourth session of the 14th National People's Congress.

The total amount of central government transfers to local governments is expected to reach 10.42 trillion yuan this year, he said, adding that the measure will further enhance the financial capacity of local governments.

More funds will be allocated to key areas and critical sectors of high-quality development, Lan said, noting that nearly 1.3 trillion yuan of fiscal funds will be allocated this year to support science and technology development, an increase of 7.1 percent from the previous year, while combined spending on education, social security, employment, health care and housing is expected to exceed 12.4 trillion yuan.

To boost domestic demand, the central government will allocate 100 billion yuan this year to introduce a package of coordinated fiscal and financial policies aimed at supporting private investment and boosting consumer spending, he said.

Lan also said that authorities will "keep their belts tightened" to secure funding for the people. The Chinese central government will cut its spending on official overseas visits, official vehicles, and official hospitality by at least 7 percent this year, while conference and training expenses will be reduced by 10 percent.