Ministry of Finance's Lan Fuan: In 2026, fiscal policy will adhere to a more proactive stance, with hundred-billion-level fiscal arrangements to boost domestic demand

The Fourth Session of the 14th National People’s Congress will hold a press conference at 3:00 PM on Friday, March 6, 2026, at the Media Center News Hall. Minister of Finance Lan Fuan will answer questions from Chinese and foreign journalists.

Below is a summary of the key points from the press conference:

• Over the years, in accordance with the decisions and deployments of the Party Central Committee, fiscal policy has always maintained an active stance. Last year, we implemented a more proactive fiscal policy for the first time, further strengthening macro regulation. This year, we continue to adhere to a more proactive tone, maintaining the same intensity on the basis of last year’s overall expansion. This arrangement fully considers the profound and complex changes in the domestic and international situation, balances countercyclical and cross-cycle adjustments, promotes continued structural optimization, enhances economic resilience, and provides solid support for a good start and steady progress in the 14th Five-Year Plan.
• In terms of fiscal funding scale, this year has set new records in three areas. First, total expenditure reached a new high, exceeding 30 trillion yuan for the first time. Second, the scale of new government bonds reached a record 11.89 trillion yuan, the largest in recent years. Third, central transfers to local governments also hit a new high, further strengthening local fiscal capacity. The total central transfer payments to local governments reached 10.42 trillion yuan, exceeding 10 trillion yuan for four consecutive years.
• The more proactive fiscal policy is summarized as not only increasing the scale of funds and providing strong policy support but also enhancing policy coordination to amplify effects. This year, we innovatively established a policy tool for fiscal and financial coordination to promote domestic demand, focusing on two key areas: residents’ consumption and private investment. A mechanism has been designed to leverage the respective advantages of fiscal, financial, and industrial policies, integrating and coordinating them organically. This drives financial liquidity and large-scale social funds toward consumption and the real economy, further magnifying the multiplier effect of fiscal funds.
• Internal demand as the main driver and internal circulation as a key feature is a unique advantage of a large economy. Currently, China’s economy is generally shifting towards new and better quality, but the contradiction of strong supply and weak demand remains prominent. Residents’ consumption vitality is insufficient, and private investment growth is weak. To address this issue, the central fiscal authorities have allocated 100 billion yuan this year to launch a comprehensive set of policies for fiscal-financial coordination to promote domestic demand, forming a transmission chain of fiscal policy, financial amplification, and market operation. This aims to mobilize larger social resources toward key areas for expanding demand. Coupled with this year’s 250 billion yuan policy for old-for-new consumer goods replacement, which is more substantial than last year, it is estimated that the 100 billion yuan in fiscal funds can support trillions of yuan in credit, achieving a “two-way push” effect.
• It is preliminarily estimated that 100 billion yuan in fiscal funds can support trillions of yuan in credit, achieving a “small push with a big effect.” He emphasized giving consumers more choices. The personal consumption loan interest subsidy policy from last year has been optimized and upgraded this year, shifting from government-matched loans to consumer self-selected loans. First, restrictions in the consumption field have been lifted; for everyday consumption—whether goods or services, big or small, online or offline—as long as consumers genuinely spend, the government will provide a 1% interest subsidy. Second, the cap on single-loan subsidies has been raised. Consumers can enjoy a maximum subsidy of 3,000 yuan on each loan, with a corresponding credit limit of 300,000 yuan, better meeting the needs for car purchases and home renovations. Third, new consumption scenarios and models have been expanded. Policies now align with common consumer habits, including online credit services like Huabei and Weiliandai, credit card installment plans, and auto finance, all of which can benefit from interest subsidies. These series of upgrades further reduce costs, diversify choices, and improve convenience, maximizing the policy experience and consumer satisfaction.

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