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Source: People's Republic of China – State Council News
BEIJING, Oct. 8 (Xinhua) — China's fiscal strength has increased during the 14th Five-Year Plan period (2021-2025), contributing to economic growth and improving people's lives, as well as containing risks and advancing reforms, Finance Minister Lan Fo'an said.
He noted that during the 14th Five-Year Plan, progress had been made in key areas, including strengthening fiscal capacity amid rising revenues and expenditures, more active fiscal macro-regulation, increasing capital investment in the well-being of the population, effectively preventing and controlling fiscal risks, deepening reforms in the fiscal and tax spheres, and expanding international financial cooperation.
FISCAL POWER
According to China's Ministry of Finance, the country's general public budget revenue is expected to reach 106 trillion yuan (about $14.93 trillion) during this period, up 19 percent from the 13th Five-Year Plan period (2016-2020).
Local fiscal capacity also grew steadily. Sixteen provincial regions recorded revenue increases of more than 20 percent in 2024 compared to 2020, with seven regions reporting revenues exceeding 500 billion yuan, two of which exceeded 1 trillion yuan, according to the data.
Government spending has reached an unprecedented level: general public budget expenditure during the 14th Five-Year Plan period is expected to exceed 136 trillion yuan, up 26 trillion yuan, or 24 percent, from that during the 13th Five-Year Plan period.
Over the past four years, the country's economy has grown by an average of 5.5 percent per year, contributing approximately 30 percent to global economic growth.
POPULATION-ORIENTED EXPENDITURE
China's fiscal policy is increasingly focused on the well-being of the population, ensuring that the benefits of China's modernization are distributed even more widely and fairly among the country's residents, Lan Fo'an emphasized.
During the 14th Five-Year Plan period, the general public budget allocation included 20.5 trillion yuan for education, 19.6 trillion yuan for social security and employment, 10.6 trillion yuan for health care, and 4 trillion yuan for housing.
Together with expenditures in other areas, fiscal investments in the welfare of the population amounted to almost 100 trillion yuan.
This year, the central budget allocated 100 billion yuan for childcare subsidies and 20 billion yuan for the gradual introduction of free preschool education in response to the concerns and needs of the people.
DEBT UNDER CONTROL
In the fourth quarter of last year, China implemented a package of measures to combat debt risks, which took effect as planned and continues to produce results, Lan Fo'an said.
As of the end of last year, China's public debt stood at 92.6 trillion yuan (about $13.04 trillion), of which 34.6 trillion yuan was central government debt, 47.5 trillion yuan was local government statutory debt, and 10.5 trillion yuan was local government hidden debt, the minister noted.
China's government debt ratio at the end of 2024 was 68.7 percent, significantly below the G20 and G7 averages, he stressed.
“The level of government debt burden is within reasonable limits, and risks are within a safe range and under control,” the minister stated.
In the next five years, China will allocate part of the quota for new local government debt in advance and take many measures to pay off hidden local government debt to better balance development and security.
WIDE OPPORTUNITIES FOR POLITICS
When asked about the next steps in fiscal macro-regulation, Lan Fo'an noted that China's fiscal policy will continue to maintain a balance between risk prevention and growth promotion, while maintaining ample room for future measures.
The underlying trend of improving China's economy will not change in the long term, providing a solid foundation for financial operations, he stressed.
Over the past years, the country has gained even more experience in the field of macroregulation, enriched its policy toolkit, and significantly expanded its capabilities in the field of counter-cyclical and inter-cyclical regulation, the minister added.
By improving risk prevention institutions and mechanisms in key areas and gradually addressing existing risks, China has become even more prepared and confident in responding to future financial challenges, Lan Fo'an said.
In summary, the head of the department emphasized that financial departments will continue to maintain the continuity and stability of policy measures, strengthen flexibility and prudence, strengthen policy reserves, and support high-quality socio-economic development through fiscal efforts. -0-
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