BEIJING (Reuters) – China has plenty of room for fiscal policy and tools to support economic growth this year and will increase spending to boost investment, Vice Finance Minister Liao Min said on Friday.
A more proactive fiscal policy can be expected in 2025. year, in terms of its strength, efficiency and time, said Liao at the press conference.
“Facing new situations and problems in the internal and external environment, we have enough political space and tools,” Liao said.
The authorities will closely monitor the international and domestic situation and adjust policies to provide strong support for economic and social development.
In December, China’s top leaders pledged to increase the budget deficit, take on more debt and loosen monetary policy to maintain a stable economic growth rate, according to a summary of the Central Economic Working Conference.
Reuters reported that Beijing will target a budget deficit of 4% of gross domestic product this year, while maintaining an economic growth target of around 5%.
In 2024, local governments issued a total of 4 trillion yuan ($545.5 billion) in special bonds, including 3.9 trillion yuan under the annual quota and 100 billion yuan carried over from 2023, Liao said.
In addition, local governments have issued 2 trillion yuan in special bonds to replace hidden local debt by Dec. 18, he added.
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