At a press conference held by the State Council Information Office on January 20, officials from China's Ministry of Finance outlined the results of fiscal policy implementation in 2025 and detailed the policy orientation for the new year.

China will continue to implement a more proactive fiscal policy in 2026, with overall spending strength set to increase, as authorities seek to provide solid support for economic and social development, officials said on Tuesday.

According to the ministry, the guiding principles for fiscal policy in 2026 will focus on expanding the overall scale, improving the structure, enhancing efficiency and strengthening growth momentum, while ensuring sustained policy support to stabilize expectations and support recovery.

Officials said fiscal policy in 2025 placed a strong emphasis on boosting consumption and expanding domestic demand, with notable results. Through the issuance of ultra-long special treasury bonds, 300 billion yuan was allocated directly to subsidies for consumer goods trade-in promotions, effectively driving sales of related products. Measures such as interest subsidies for personal consumption loans and optimized tax refund services for overseas visitors also helped unleash consumption potential from both the supply and demand sides.

Building on this foundation, the fiscal policy in 2026 will continue, reinforcing dual support for consumption and investment. To ensure precise implementation, the Ministry of Finance, together with other government departments, released five supporting policy documents on January 20, detailing the rollout of key measures.

Under the personal consumption loan interest subsidy program, the policy will be extended through the end of 2026. The scope of support will be expanded to include credit card installment payments, and the cap on interest subsidies for individual loans will be removed.

To encourage private investment, a dedicated guarantee program with a total scale of 500 billion yuan ($71.8 billion) will be launched over two years. The program will focus on providing credit enhancement for private investment loans to small and micro enterprises.

The equipment renewal loan interest subsidy policy will also be significantly expanded. More than 10 new sectors, including construction, artificial intelligence and elderly care, will be brought under the program, with an interest subsidy rate set at 1.5 percentage points.

For small and micro enterprises, eligible fixed-asset loans will receive annual interest subsidies of 1.5 percentage points. The maximum loan amount eligible for subsidies per enterprise will be capped at 50 million yuan.

Support for service-sector business entities will likewise be extended through the end of 2026. The maximum subsidized loan amount per entity will be raised to 10 million yuan, with new support added for digital and green sectors.

The Ministry of Finance stressed that while maintaining necessary spending intensity, fiscal policy in 2026 will place greater emphasis on optimizing the spending structure and improving efficiency. The authorities will strengthen financial support for major national strategic tasks, better balance development and security, and strive to effectively prevent and defuse potential risks.