Robust commitment seen to meet GDP target

The decision to maintain the 2025 GDP growth target at "around 5 percent", as revealed in the Government Work Report released during the recently concluded two sessions, alongside an enlarged deficit-to-GDP ratio, were seen by experts as a robust commitment by the government to leverage fiscal instruments in sustaining a steady growth trajectory despite challenges.

According to the report, the nation "will appropriately enhance the intensity" of its fiscal policy and the deficit-to-GDP ratio will be set at about 4 percent, a record high. Also, the total scale of government debt will reach 11.86 trillion yuan ($1.64 trillion), an increase of 2.9 trillion yuan from the previous year, indicating that the government has significantly stepped up its efforts to expand fiscal spending and aims to stimulate economic growth, said a GF Securities report.

With an increase of 1 percentage point in the deficit-to-GDP from last year, an expected ultra-long-term special treasury bond issuance of 1.3 trillion yuan — 300 billion yuan more than last year — and 4.4 trillion yuan in special-purpose bonds for local governments, it has been clear that the government will take resolute moves to secure its growth momentum, reflecting an increasing focus of the nation on clearing risks behind local government debt, said Huafu Securities.