China to adopt more proactive fiscal policy

China will adopt a more proactive fiscal policy, according to a government work report submitted on Wednesday to the national legislature for deliberation.

China has set the deficit-to-GDP ratio for this year to around 4 percent, an increase of one percentage point over last year, the report said.

It added the government deficit is set at 5.66 trillion yuan (about $780 billion), an increase of 1.6 trillion yuan over last year's budget figure.

China will issue a total of 1.3 trillion yuan of ultra-long special treasury bonds in 2025, up 300 billion yuan from last year, it said, adding that the country's new government debt will total 11.86 trillion yuan in 2025, an increase of 2.9 trillion yuan over last year, enabling a notably higher level of fiscal spending.

The report said China plans to issue 4.4 trillion yuan of local government special-purpose bonds in 2025, an increase of 500 billion yuan over last year, which will be mainly used in areas such as construction investment, land acquisition and reserve, purchase of commodity housing stock, and settlement of overdue payment owed by local governments to enterprises.