Proactive fiscal policy to lift growth

Planned steps to sustain infrastructure investment, counter epidemic fallout

China will adopt a more proactive fiscal policy by expanding central government budget deficit and increasing fund transfers to local governments to boost investment and maintain stable economic growth, according to the 2020 Government Work Report.

The central government has planned a fiscal budget deficit of about 3.76 trillion yuan ($530 billion) this year, an increase of 1 trillion yuan from last year. The deficit-to-GDP ratio is projected at more than 3.6 percent, compared with 2.8 percent last year.

In addition, China will issue 1 trillion yuan of special central government bonds to mitigate the COVID-19 epidemic effect.