China’s 2026 fiscal policy will focus on expanding domestic demand, supporting an economic restructuring, and safeguarding social stability, China Daily reports – citing an announcement made by the nation’s finance minister, Lan Fo’an, over the weekend.
Speaking at a fiscal work conference in Beijing, Lan said next year’s policy approach is intended to lay the groundwork for the 15th Five-Year Plan (2026 to 2030). He said authorities would prioritise employment, business confidence and market stability, while advancing reforms and managing financial risks.
Lan added that the government planned to expand the scale of fiscal expenditure to ensure funding for essential spending, while optimising the mix of government bond instruments to improve policy effectiveness. Measures will also be taken to improve the efficiency of transfer payments to local governments, giving them greater fiscal flexibility.
He said support for science and technology would be increased, alongside new pilot programmes for manufacturing upgrades in selected cities. Authorities would also continue to support rural revitalisation, people-centred urbanisation and coordinated regional development.
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Green and low-carbon development would remain a policy focus, with funding directed toward pollution control, ecosystem restoration and emissions reduction, Lan said. He highlighted continued efforts to strengthen international economic and financial cooperation and to support the operation of the Hainan Free Trade Port.
Reviewing developments in 2025, Lan said fiscal authorities had maintained strong spending, increased support for national priorities, expanded trade-in programmes for equipment and consumer goods, and stepped up investment in research. Measures were also taken to support employment, expand childcare subsidies and strengthen oversight of local government debt.
Analysts said a more proactive and targeted fiscal policy could help give greater certainty for businesses, support household incomes and improve the financial sustainability of local governments, as China seeks to stabilise growth and domestic demand in the coming years.
Zhu Yu, leading partner of financial services at Pan-China Certified Public Accountants, described a “virtuous cycle” that would lay “a solid foundation for long-term economic growth.”
