China targets 'proactive' fiscal policy

Nation to expand government bond issuances, says vice-minister of finance

China, with more forceful countercyclical adjustments in mind, will steer toward "very proactive" fiscal policy this year — including increasing the deficitto-GDP ratio and issuing larger-scale government bonds, and will "front-load" its fiscal firepower to better underpin a positive economic growth trajectory, Vice-Minister of Finance Liao Min said on Friday.

As China navigates the ever-changing domestic and international landscapes, policymakers are well-equipped with "ample policy space and a diverse tool kit", Liao said at a news conference, stressing that the country will resort to policy reserves should new circumstances call for them.

"Given the steady growth in China's GDP, the increase in the deficit ratio will translate into a substantial expansion of the overall budget deficit, allowing for a further increase in total fiscal expenditures and a more forceful implementation of countercyclical adjustments," Liao said.