(Yicai) March 17 -- China will continue to implement a “more proactive” fiscal policy this year, according to the Ministry of Finance, with priorities including building a strong domestic market and promoting technological self-reliance.

The ministry released a report yesterday stating that China's fiscal policy will cultivate and strengthen new growth drivers, as well as advancing new urbanization and regional coordinated development, fostering green transformation, and enhancing the scientific management of finance.

There will also be measures to ease people’s financial burden, the report said. This year will see an increase in the per capita financial subsidy standard for urban and rural residents' basic medical insurance, as well as a rise in the basic pension and the launch of a childcare subsidy system.

On March 14, the State Council released its annual budget report, stating that China will issue CNY11.89 trillion (USD1.7 trillion) in new government bonds to expand fiscal spending. This means the combined total of the national general public budget expenditure and government fund expenditure will increase by 4.6 percent year-on-year. The move is aimed at stimulating demand and supporting stable growth.

The report released yesterday indicated that the overall fiscal operation in the country remained stable last year, but due to multiple factors both general public budget revenue and government fund revenue fell short of expectations.

To maintain expenditure levels, the government increased its borrowing, the report noted. Throughout the year, it successfully issued CNY1.3 trillion (USD188.7 billion) in ultra-long-term special treasury bonds and an additional CNY4.4 trillion in new local government special bonds, supporting over 48,000 projects.

Furthermore, CNY500 billion (USD72.6 billion) was issued in special government bonds to supplement the Common Equity Tier 1 capital of large state-owned commercial banks, and policies were introduced to provide interest subsidies for personal consumption loans and loans for service sector businesses.

The report also summarized steps that had been taken in response to external trade pressure, including tariff countermeasures against the United States, while also engaging in China-US economic and trade consultations and promoting tariff reductions. These measures effectively boosted market expectations for both countries, and globally, the report said.

Editor: Tom Litting