(Dec 28): China pledged to broaden its fiscal spending base in 2026, signalling sustained government support to drive growth in a challenging external environment.
Beijing will expand targeted investment for priority sectors such as advanced manufacturing, tech innovation and development of human capital, according to a statement from the Ministry of Finance on Sunday. The announcement followed a year-end working meeting to set next year’s fiscal policy priorities.
The comments add to signs China is preparing to lean more heavily on fiscal policy to shore up growth, as the economy grapples with a prolonged property downturn and mounting external pressures. With room for monetary easing limited, authorities are turning to targeted government spending to bolster activity.
The ministry repeated calls to uphold domestic demand as “the driving force” behind growth and said policymakers would act to grow household incomes and stimulate consumption. It also pledged to standardise tax incentives and launch a new group of so-called pilot cities aimed at upgrading manufacturing technology.
Authorities will refine the mix of government bond tools to improve their effectiveness, the ministry said.
Beijing will also continue to support the national consumer goods trade-in programme, Xinhua News Agency reported, citing remarks made by Finance Minister Lan Fo’an at the conference. The initiative — which offers subsidies to households that replace older home appliances with newer, more energy-efficient models — fuelled a shopping spree earlier this year that threatened to overwhelm some regional authorities.
See also: China industrial profits decline in November as demand cools
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