A view of the skyline of Beijing's CBD area. Photo: VCG

China's government debt-to-GDP ratio remained significantly lower than the G20 average, even as the country ramped up fiscal support in 2025 to drive high-quality growth and support economic transformation, Liao Min, Vice Minister of Finance stated at a State Council Information Office press conference on Tuesday.

In 2025, China's fiscal deficit ratio was set at around 4 percent, up 1 percentage point from 2024, and new government debt issuance reached 11.86 trillion yuan ($1.7 trillion), an increase of 2.9 trillion yuan, according to statistics released by the Ministry of Finance (MOF).

"Despite the expanded deficit and bond issuance, China's debt levels remain relatively low by international standards, and far below the G20 average level," said Liao.

Liao highlighted that 2025's more proactive fiscal policy balanced short-term growth support with long-term structural upgrades. "It effectively propped up current economic momentum, delivered on livelihood priorities, and laid a solid foundation for medium- to long-term sustainable development - gaining broad recognition both domestically and internationally," said Liao.

According to the MOF, the main tasks of fiscal policy in 2025 also included vigorously boosting consumption, continuously strengthening livelihood safeguards, and adhering to the balanced approach of preventing risks while promoting economic development.

Global Times