The fiscal gap is widening! Beijing requires party and government agencies to implement "tightening of life"

China's economy has been weak in recent years and fiscal revenue has dropped significantly. Party and government agencies, universities and colleges have been required to practice strict economy and live a tight life. China's Ministry of Finance released the "Report on the Implementation of Fiscal Policy for the First Half of 2026" on the 9th, emphasizing that it will strengthen fiscal expenditure management with stricter standards and more specific measures, and strictly requires party and government agencies to implement "tightening days".

When referring to the fiscal policy outlook for the next stage, the report pointed out that the pilot project of scientific fiscal management will be promoted, fiscal expenditure management will be strengthened with stricter standards and more specific measures, and the requirements of party and government agencies who are accustomed to tight living conditions will be implemented. The construction of the financial supervision system and mechanisms will be strengthened to continue to enhance the authority and effectiveness of financial supervision.

In March this year, China's Finance Minister Lan Fo'an bluntly stated at the economic press conference of the Fourth Session of the 14th National People's Congress that he would strictly implement the requirements of party and government agencies to live a tight life. The current fiscal situation shows a "tight balance". The country's money is not unlimited, and fiscal management needs to be strengthened. He will be a good iron rooster, make good calculations, and spend every penny in half.

China's Ministry of Finance pointed out that from January to August this year, China's national general public budget revenue was 15.66 trillion yuan, and the national general public budget expenditure was 18.15 trillion yuan, showing that the fiscal gap is widening; of which, state-owned land transfer revenue was approximately 1.38 trillion yuan, a year-on-year decrease of 28.6%.

Due to the sharp decrease in income, party and government agencies, universities and colleges are required to practice strict economy and live a tight life. The Chinese media "Yicai Global" previously reported that the so-called tight living means that party and government agencies reduce administrative expenses, non-essential and non-urgent expenses, etc., such as reducing "three official expenses" (i.e., expenses for business trips abroad, official reception expenses, official vehicle purchase and operation and maintenance expenses), conference fees, training fees, etc.

In September this year, Peking University issued the "Peking University Implementation Measures for Implementing Tightening Living Requirements," which requires the entire school to practice economy and strictly control administrative and official expenditures. It clearly stipulates that students are not allowed to go to 21 scenic spots such as Huangshan, Jiuzhaigou, and Sanya to hold meetings or training. Many universities and colleges in China, including Beijing Forestry University, Shanxi Vocational and Technical College of Finance and Trade, and Anhui University of Jianzhu, have also issued similar requirements.

In addition, Chinese local governments would put up lanterns and decorations during the National Day holiday in previous years, but this year, faced with debt and financial pressure, many provinces have implemented a "frugal National Day holiday". In Zhengzhou, the capital of Henan Province, the city administration said that in its work to create an urban atmosphere, it is a priority to use intact flags that can be used in previous years and reuse them after cleaning and maintenance.