China set its deficit-to-GDP ratio at around 4 percent for 2025, stepping up counter-cyclical fiscal adjustments to support high-quality economic and social development, Vice Minister of Finance Liao Min said at a press briefing in Beijing on Tuesday.
The higher deficit ratio reflects a stronger policy stance for the incoming year, Liao said at the press conference held by the State Council Information Office.
"First, the deficit-to-GDP ratio was set at around 4 percent for 2025, which was 1 percentage point higher than last year. The scale of new government debt reached 11.86 trillion yuan (about 1.7 trillion U.S. dollars), up by 2.9 trillion yuan the previous year, both far above the average level of the past few years. Second, we have issued 500 billion yuan in special treasury bonds to replenish core Tier-1 capital of large state-owned commercial banks, which has significantly enhanced the ability of our banking sector and the broader financial system to support the real economy," he said.
"Third, we have arranged a carryover quota for local government debt of 500 billion yuan to strengthen overall local fiscal capacity and expand effective investment. Although we have increased the deficit and the scale of government bonds, by international comparison, China's government debt level remains relatively low, well below the average level of G20 countries," the vice minister said.
China sets deficit-to-GDP ratio at around 4 pct for 2025: vice minister
