Finance minister explains 'more proactive fiscal policy' as tool to spur growth

China

Finance minister explains 'more proactive fiscal policy' as tool to spur growth

2025-03-06 19:49 Last Updated At：20:47

China has more room to act on fiscal policy to drive economic growth this year, Finance Minister Lan Fo'an said on Thursday.

Lan expounded what a "more proactive fiscal policy" entails at a news conference held on the sidelines of the annual "two sessions" in Beijing.

"Firstly, we will make our deficit policy more effective. This year, the deficit-to-GDP ratio is set at around 4 percent, and the government deficit will reach 5.66 trillion yuan, 1.6 trillion yuan more than last year. Both the level and size of the deficit are the highest in recent years, and counter-cyclical adjustment will be further intensified," he said.

"Secondly, we will intensify fiscal expenditure. This year, national expenditure in the general public budget will reach 29.7 trillion yuan, up 4.4 percent over last year. Further expansion of government expenditure will strongly promote sustained and sound economic and social development," said Lan.

"Thirdly, we will scale up the insurance of government bonds. This year, China will issue 4.4 trillion yuan of local government special-purpose bonds, 1.3 trillion yuan of ultra-long special treasury bonds, and the first batch of 500 billion yuan of special government bonds for major state-owned commercial banks to replenish tier-1 capital. Together with government bonds to cover the deficit, the amount of new government bonds this year will reach 11.86 trillion yuan, 2.9 trillion yuan more than last year," said the minister.

Lan also noted that this year's fiscal policy will also be more effective in transfer payments to local governments to enhance their fiscal capacity. The policy will also be more effective in supporting for education, social security, employment, science and technology, health, housing and other key areas.

In addition, the Chinese central government has sufficient reserve tools and policy space in the face of potential internal and external uncertainties, according to Lan.

Protest erupts in Mexico City over US military operation in Venezuela

Protesters filled Mexico City's Paseo de la Reforma on Saturday, rallying in solidarity with Venezuela and denouncing U.S. influence in Latin America.

The United States launched a large-scale military operation against Venezuela in the early hours of Jan 3, taking by force Venezuelan President Nicolas Maduro and his wife, Cilia Flores.

Holding numerous flags and banners while chanting slogans intermittently, a huge crowd of protesters criticized U.S. military actions against Venezuela and the unlawful control over President Maduro and his spouse, calling for respect for national sovereignty and regional peace.

"We oppose the U.S. intervention and hegemony towards the countries in Latin America. The United States has flagrantly trampled on international law, bombed Caracas and kidnapped the Maduro couple. The U.S. interventionism has become extremely blatant. We must firmly oppose and be highly vigilant, because this is not only related to a certain country, but also to all countries," said a protester.

"We demand that the United States stop interfering in Venezuela's internal affairs. The country must immediately cease its exploitation and plundering of the countries in Latin America," said another protester.