The Ministry of Finance of China File Photo: VCG

China's fiscal authorities will continue to pursue a more proactive fiscal policy in 2026 in line with the arrangements of the Central Economic Work Conference (CEWC), by expanding fiscal expenditure, improving the structure of expenditures, achieving better efficiency and deepening reforms in key fiscal and taxation areas, which will provide support for stabilizing employment, enterprises, markets, and expectations, ensuring a strong and successful start to the 15th Five-Year Plan period (2026-30), an official said on Tuesday.

The fiscal plan in 2026 can be summarized in four key phrases: increased total volume, optimized structure, better efficiency, and stronger momentum, Liao Min, deputy head of the Ministry of Finance (MOF), said on Tuesday at a press conference.

"Increased total volume means expanding the overall fiscal expenditure envelope to ensure sufficient spending power. In 2026, fiscal deficits, total government debt, and aggregate expenditure will be maintained at necessary levels, guaranteeing that overall spending strength will only increase, never decrease and support for key areas will only strengthen, never weaken," said Liao.

Building on the already more proactive stance in 2025, further expanding the fiscal spending scale itself demonstrates the highly proactive nature of the policy. At the same time, full consideration has been given to medium- and long-term fiscal sustainability to enhance long-term development potential, Liao noted.

"Multiple business-support and people-benefiting policies announced Tuesday have been fully funded in the 2026 budget prepared by the MOF," said Liao. 

Liao also pointed out that an optimized structure will focus on continuously improving the composition of expenditures so that funds are directed where they are most urgently needed. 

More fiscal resources will be channeled toward boosting consumption, "investing in people," strengthening livelihood safeguards, and increasing people's incomes through multiple channels, said Liao.

Li Xianzhong, director-general of the Comprehensive Department of the MOF, said on Tuesday at the press conference that the ministry continued to optimize the expenditure structure in 2025, with combined spending on social security and employment, science and technology, education, and health exceeding 10 trillion yuan ($1.4 trillion) in the first 11 months of 2025, accounting for more than 40 percent of general public budget expenditure.

Meanwhile, Liao said that the MOF will strive to maximize the effectiveness of every yuan spent. In 2026, ultra-long special treasury bonds will continue to be issued to support the large-scale equipment upgrade and consumer goods trade-in programs, as well as the initiatives of implementing major national strategies and strengthening security capacity in key areas.

Liao also stressed deepening reforms in key fiscal and taxation areas to further unleash the economy's internal vitality. This includes implementing optimized export tax rebate policies, and cleaning up and standardizing tax incentives and fiscal subsidies.

"In summary, in 2026, the MOF will deliver 'hardcore' support for stabilizing employment, enterprises, markets, and expectations, ensuring a strong and successful start to the 15th Five-Year Plan period," said Liao.

According to the CEWC, held in December 2025, it is imperative to secure the steady development of employment, businesses, markets and expectations, getting the 15th Five-Year Plan off to a good start.

From the perspective of future development trends, the biggest driver of economic growth should also be the biggest source of employment growth, Li Chang'an, a professor at the Academy of China Open Economy Studies under the University of International Business and Economics, told the Global Times.

"In the process of developing new quality productive forces, a multitude of new economic forms and emerging industries will emerge, generating tremendous new demand for jobs," said Li Chang'an.

Global Times