Chinese Finance Minister Lan Fu’an delivered a speech at a press conference held in Beijing on November 8, 2024.
Adek Berry | AFP | Getty Images
Beijing – Finance Minister Lan Fo’an told reporters on Thursday that China has more room for fiscal policy amid domestic and external uncertainties.
At China’s “two meetings” annual parliamentary meeting, he answered the country’s proactive fiscal policy plan this year.
China announced on Wednesday that it would raise its budget deficit to 4% of the country’s GDP, the highest since at least 2010.
The government also plans to issue RMB 130,000 (US$178.9 billion) in 2025 on ultra-long-term special bond bonds, which was the 300 billion yuan hike last year. The amount increased is mainly to support consumers’ trade-offs.
China said it aims to issue 44,000 yuan of local government special-purpose bonds (i.e. 500 billion yuan more than last year) to help alleviate financial pressures from local authorities.
The country also said on Wednesday it would target GDP growth About 5% this yearwhile reducing its inflation target to 2% – the lowest in about 20 years.
“China has already delivered a message to promote growth at the National People’s Congress,” said Aaron Costello, head of Asia at the University of Cambridge. The NPC is part of the “two meetings” meeting.
Costello notes that apart from specific stimulus plans, the bigger problem facing China is Low business and consumer sentiment. He noted that last month’s meetings with many tech entrepreneurs such as Chinese President Xi Jinping’s signal to encourage private business growth.
This breaking news report is being updated.
