China is set to implement significant changes to its fiscal policy in 2025, aiming to stimulate economic growth through an increased fiscal deficit and expanded use of special bonds. Officials made the announcement on Friday during a series of press briefings focused on the country’s high-quality economic development.
Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance, revealed that local governments will have greater flexibility within the quota of new special bonds to be issued in 2025. Specifically, they will be allowed to make arrangements for land use as needed.
These arrangements include two key special bond projects: the reservation of land and the purchase of existing commercial housing to be repurposed as affordable housing. Lin emphasized that the effects of this policy will gradually unfold throughout 2025, potentially providing a boost to both the real estate market and the broader economy.
Reference(s):
cgtn.com
