Lan Fuan, Ministry of Finance: In 2026, fiscal policy will maintain a more proactive tone, with fiscal arrangements amounting to hundreds of billions to boost domestic demand.

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The fourth session of the 14th National People's Congress will hold a press conference at 3 p.m. on Friday, March 6, 2026, in the Media Center Press Hall. Minister of Finance Lan Fuan will answer questions from Chinese and foreign journalists.

The following is a summary of the key points from the press conference:

Over the past years, in accordance with the decisions and deployment of the Party Central Committee, fiscal policy has always maintained a proactive stance. Last year, we implemented an even more proactive fiscal policy for the first time, with macro adjustments further strengthened. This year, we continue to adhere to a more proactive tone, maintaining the momentum on the basis of last year's overall expansion. This arrangement fully takes into account profound and complex changes in the current domestic and international situation, balancing both counter-cyclical and cross-cyclical regulation needs, promoting continuous structural optimization, enhancing the resilience of economic development, and providing solid support for a good start to the "15th Five-Year Plan".In terms of the scale of fiscal funds, this year we have reached "new highs" in three aspects. First, total expenditure hit a new record, surpassing 30 trillion yuan for the first time. Second, the scale of newly issued government bonds hit a new high at 11.89 trillion yuan, the largest in recent years. Third, central transfers to local governments hit a new high, further strengthening the financial capacity of local governments. The total central transfers to local governments reached 10.42 trillion yuan, exceeding 10 trillion yuan for four consecutive years.The more proactive fiscal policy is reflected not only in the scale of funds, with sufficient policy strength, but more so in the reinforcement of policy coordination, amplifying effects further. This year, we have innovatively established a fiscal-financial coordination policy tool to boost domestic demand, focusing on the two key areas of household consumption and private investment. We designed a mechanism to harness the respective advantages of fiscal, financial, and industrial policies, integrating and coordinating them to channel financial resources and large-scale social funds into consumption and the real economy, further amplifying the multiplier effect of fiscal funds.Domestic demand-led and internally circulative economy is a unique advantage of a major economy. Currently, China’s economy is generally trending toward new and better quality, but the contradiction between strong supply and weak demand is still prominent, with insufficient consumer vitality and weak growth in private investment. To address this, this year the central government has specially allocated 100 billion yuan, launching a package of policies coordinating fiscal and financial measures to promote domestic demand, forming a transmission chain of fiscal guidance, financial magnification, and market operation to leverage greater social resources into key areas for expanding domestic demand. Adding the 250 billion yuan policy for replacement of old consumer goods this year, the effort exceeds that of last year. Preliminary estimates show that fiscal funds at the scale of 100 billion yuan can support and benefit credit at the trillion-yuan level, achieving a "small investment, big impact".Preliminary estimates show that fiscal funds at the 100 billion yuan scale can support and benefit credit at the trillion yuan scale, achieving a "small investment, big impact." He pointed out that consumers are granted more choices. Last year's personal consumption loan interest subsidy policy has been optimized and upgraded this year, shifting from government selection to consumer self-choice. First, restrictions in consumption areas have been removed. For people’s daily consumption, whether goods or services, large or small items, online or offline, if you truly spend, the government will provide you with a one-percent loan interest subsidy. Second, the maximum subsidy per loan is increased. Consumers can enjoy an interest subsidy of up to 3,000 yuan for a single consumption loan at each financial institution, corresponding to a loan amount of 300,000 yuan, better meeting consumer demand for buying cars, home renovations, etc. Third, new consumption scenarios and models are expanded, with policies aligning with public consumption habits. Online consumption loans such as Huabei and WeLiDai, installment credit card bills, and auto finance can all enjoy the subsidy. This series of optimizations and upgrades further reduce costs, enrich choices, and increase convenience, greatly enhancing the policy experience.

Continuously updating...

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