China’s Fiscal Policy Outlook: Focus on Six Major Tasks

China News Service, Beijing, October 9 (Reporter Zhao Jianhua) On the 9th, the Ministry of Finance of China announced the report on the implementation of China’s fiscal policy in the first half of 2026 (hereinafter referred to as the report). When talking about the outlook for fiscal policy, the report stated that we should give full play to the effectiveness of existing policies, plan and introduce pragmatic and effective incremental policies in a timely manner based on macroeconomic conditions, and focus on six aspects: effectively and effectively implement more proactive fiscal policies, support all-round expansion of domestic demand, promote technological innovation and industrial innovation, continue to protect and improve people's livelihood, strengthen risk prevention and resolution in key areas, and deepen fiscal management reform.

The report emphasizes ensuring expenditures in key areas and improving fund utilization efficiency and policy implementation effects. Reasonably speed up the issuance and use of government bonds to create more physical workload as soon as possible. Special treasury bonds were issued to increase capital of eight central financial enterprises to enhance their ability to operate steadily, resist risks and serve the real economy. Continue to implement a package of debt reduction policies, accelerate the resolution of existing hidden debts, strictly prevent false debts and new hidden debts, and promote the exit and reform and transformation of local financing platforms. Support the smooth operation of grassroots finances and secure the bottom line of the "three guarantees" at the grassroots level.

The report stated that we should optimize and implement a package of fiscal and financial coordination policies to promote domestic demand, encourage residents' consumption, and leverage private investment. Coordinate the use of ultra-long-term special treasury bonds, local government special bonds, central budget investment and other funds, focus more on key areas such as new productivity and new urbanization, and support the construction of major engineering projects determined in the "15th Five-Year Plan" outline. Highlight the supply of technological innovation and the traction of industrial demand, and comprehensively use policy tools such as special funds and government investment funds to promote the optimization and upgrading of traditional industries, and cultivate and strengthen emerging industries and future industries. Improve the efficiency of investment in scientific and technological innovation and increase support for key and strategic areas.

At the same time, we will actively stabilize employment and increase income, and strengthen employment assistance for key groups and disadvantaged groups. Implement policies such as child care subsidies, free preschool education, and consumption subsidies for elderly care services. Improve the hierarchical and classified social assistance system. The report stated that the requirements for party and government agencies to live a tight life should be implemented in place. Strengthen financial and accounting supervision, strictly enforce financial discipline, and continue to enhance the authority and effectiveness of financial and accounting supervision.