China has intensified fiscal spending through targeted measures to bolster economic growth and improve social welfare, according to a Ministry of Finance briefing on Friday. The first half of 2025 saw accelerated bond issuances and expanded funding for infrastructure, consumption incentives, and public services, reflecting Beijing's commitment to balancing immediate stabilization with long-term development.
Infrastructure and Financial Sector Support
The government approved 2.6 trillion yuan ($358 billion) in local government bonds to finance major infrastructure projects and regional development. Additionally, 500 billion yuan in special sovereign bonds were issued to strengthen four state-owned banks, enhancing their capacity to support economic activity.
Social Welfare Expansion
Fiscal policies prioritized quality-of-life improvements, including increased pension payments, expanded healthcare subsidies, and additional funding for education access. New family support initiatives, such as childcare subsidies and free preschool pilot programs, aim to alleviate household burdens amid shifting demographic trends.
Consumption Stimulus Measures
To reignite domestic demand, authorities allocated 162 billion yuan to subsidize appliance trade-in programs and broaden eligibility criteria. This move directly reduces consumer costs while supporting sustainable manufacturing cycles.
Local Government Reinforcement
Fiscal transfers to regional administrations grew 7.5% year-on-year to 2.73 trillion yuan, coupled with guidance on restructuring implicit debt. These measures aim to strengthen grassroots financial stability while mitigating repayment pressures.
The ministry reaffirmed its adaptive approach to fiscal policy, emphasizing responsiveness to evolving economic conditions while maintaining social stability.
