China to advance more proactive fiscal policy through comprehensive measures

China will implement a more proactive fiscal policy marked by sustained, amplified efforts across five key areas to bolster economic growth, Finance Minister Lan Fo'an told a press conference on Thursday.

The policy includes more robust deficit arrangements, strengthened expenditure intensity, expanded government bond issuance, increased transfer payments and reinforced support for critical sectors.

China has set this year's fiscal deficit target at 5.66 trillion yuan ($780 billion), or around 4 percent of gross domestic product (GDP) – a 1.6 trillion yuan increase from last year. The national public budget expenditure will rise by 4.4 percent, totaling 29.7 trillion yuan. Moreover, government bond issuance will scale up to 11.86 trillion yuan, while central-to-local transfer payments will rise to 10.34 trillion yuan.

Reinforced support will target critical sectors such as education, social security and employment, according to Lan. Science and technology expenditure will climb 8.3 percent to surpass 1.2 trillion yuan, while healthcare and housing sectors are set for substantial funding boosts.

Lan also emphasized that the Chinese central government has sufficient reserve tools and policy space to address potential internal and external uncertainties.