China's Minister of Finance Lan Fo'an said that the severity and uncertainty of China's development environment are increasing. The country will make full use of a more proactive fiscal policy and strengthen counter-cyclical fiscal adjustments. At the same time, it will focus on boosting consumption to support expanding domestic demand and further unlock the potential of the domestic market.
On the 30th, the Study Times, published by the Party School of the Central Committee of the CPC, released a signed article by Lan Fo'an titled "Unite and Inspire with Excellent Work Style, Contribute Fiscal Strength to Sustained and Positive Economic Growth."
In his article, Lan Fo'an stated that with the growing complexity, severity, and uncertainty of China's current development environment, the Ministry of Finance will make full and effective use of more proactive fiscal policies and step up the intensity of counter-cyclical fiscal adjustments. It will accelerate the issuance and use of ultra-long-term special treasury bonds and local government special bonds, in order to generate tangible work volumes as soon as possible.
He also said that efforts will be focused on promoting consumption to support expanding domestic demand and further unleashing the market's potential in boosting consumption. The policy system supporting service consumption in elderly care, childcare, culture, tourism, etc. will be continuously improved; the duty-free store policy will be improved; fiscal and financial policy coordination will be enhanced; and key policies such as interest subsidies on personal consumption loans and operating loans for service industry entities in priority areas will be introduced and implemented.
Additionally, the authorities will continue to advance construction of the "two major" (implementation of national major strategies and building capabilities in key areas of security) projects, support the accelerated establishment of a new model for real estate development, implement urban renewal initiatives, and promote the continued healthy development of the real estate market.
In terms of strengthening livelihood protection, Lan Fo'an pointed out that greater efforts will be made to implement job stabilization policies, including strong implementation of job retention rebates, tax and fee reductions, and employment subsidies, and strengthening employment protection for key groups; accelerating the implementation of childcare subsidy systems, gradually rolling out free preschool education, and issuing care service subsidies for disabled elderly people, etc.
The International Monetary Fund (IMF) on the 29th slightly raised its global growth forecasts for this year and next, with the largest upward revision to growth forecast for China, now expecting China's GDP to grow by 4.8% this year, up from the previous projection of 4.0%.