Finance Ministry Outlines Proactive Fiscal Plan to Boost Domestic Demand and Consumption in 2025

【Ministry of Finance: Support for All-round Expansion of Domestic Demand and Vigorous Boost to Consumption】

On March 24, the Ministry of Finance released the Report on the Implementation of China's Fiscal Policy in 2024. The report proposes that in 2025, fiscal policy should be more proactive in supporting the all-round expansion of domestic demand and vigorously boosting consumption. It will increase the intensity of livelihood security and raise residents' income through multiple channels. Special actions to boost consumption will be implemented, and greater support will be provided for the trade-in of consumer goods. The basic pensions of retirees will be moderately increased, and the basic pension standards for urban and rural residents as well as the fiscal subsidy standards for urban and rural residents' basic medical insurance will be raised. Actions to strengthen and upgrade the national comprehensive freight hub and to digitally transform and upgrade highway and waterway transportation infrastructure will be advanced, in order to reduce the overall logistics costs in society. Effective investment will be actively expanded. Various types of government investment funds will be coordinated and used to focus on increasing investment in key areas and weak links. The issuance of government bonds will be reasonably arranged, the budget allocation of government bond funds will be accelerated, and physical workloads will be formed as early as possible.