China implemented a more proactive fiscal policy to safeguard and improve people's livelihoods in the first half of the year, according to the country's finance ministry on Wednesday.
In the first six months, 1.2 trillion yuan (about 177.36 billion U.S. dollars) in subsidies for basic old-age insurance was allocated to support local governments in paying pensions on time and in full.
A total of 386.4 billion yuan in subsidies for basic medical insurance for urban and rural residents was allocated to consolidate enrollment rates and coverage of basic medical insurance.
In the same period, central government transfer payments to local governments totaled 10.42 trillion yuan, with the funding volume remaining above 10 trillion yuan for four consecutive years.
The central government temporarily increased its share of funding for childcare subsidies and the waiver of childcare and education fees for the final year of preschool.
"Approximately 100 billion yuan in childcare subsidies and 24.1 billion yuan in subsidies for the waiver of childcare and education fees for the final year of preschool were allocated to reduce childbirth and child-rearing costs for families. We have earmarked 156.7 billion yuan in assistance funds for people in need to support local governments in effectively ensuring the basic livelihood of vulnerable groups," said Tang Zaifu, deputy director of the Budget Department under the Ministry of Finance, at a press briefing in Beijing.
In the first half of the year, the ministry accelerated the budget allocation process to create favorable conditions for fund utilization.
The central government cleared all budget plans for all central government departments by the end of March.
Regarding central-to-local transfer payments, 9.4 trillion yuan had been allocated as of the end of June, accounting for 90.3 percent of the budget set at the beginning of the year, with the allocation progress edging up by 0.5 percentage points compared to the same period last year.
The ministry has coordinated the effective use of tools such as government bonds, fiscal interest subsidies, and special funds to continuously expand investment and stimulate consumption.
It has innovatively implemented a comprehensive package of fiscal and financial policies to boost domestic demand, giving full play to the role of fiscal funds to better stimulate private investment and household consumption.
"We have made effective use of funds such as central budgetary investment, local government special bonds, and funds for projects that concern major national strategies and security capacity-building in key areas to accelerate the realization of tangible results. We have adjusted and optimized the scope and standards for subsidies for the trade-in of consumer goods, disbursing 125 billion yuan in related subsidy funds, which has driven sales of automobiles, home appliances, and digital products totaling some 1.1 trillion yuan," said Tang.
China takes proactive fiscal policy to improve people's livelihood in H1
China takes proactive fiscal policy to improve people's livelihood in H1
