China will increase fiscal support for consumption next year (#1688475)

China will increase fiscal support for consumption next year by raising pensions and health insurance subsidies for residents, as well as expanding trade in consumer goods, its finance ministry said on Tuesday.

The country will increase the basic pension for retirees and for urban and rural residents and raise financial subsidy standards for health insurance for urban and rural residents to help “vigorously” boost consumption, the ministry said after concluding a two-day national tax work conference.

China will also step up support for consumer goods transactions, expand effective investment and push for more social investment through government investment, the ministry said.

The measures will improve people's livelihoods and the policy system to support population growth, as well as strengthen the social safety net and healthcare system, he said.

Fiscal spending will enhance technological innovation capabilities and fully support the research and development of key core technologies and promote industrial modernization, the ministry added.

At an agenda-setting meeting this month, Chinese leaders vowed to increase the budget deficit, issue more debt and ease monetary policy to maintain a stable economic growth rate, bracing for more trade tensions with the United States when Donald Trump returns to office. White House. .

Chinese authorities have agreed to issue special Treasury bonds worth 3 trillion shillings ($411.04 billion) next year, Reuters reported on Tuesday, citing two sources. It would be the highest level on record as Beijing steps up fiscal stimulus to revive a faltering economy.

Reuters reported last week that Chinese leaders agreed to raise the budget deficit to 4% of gross domestic product next year, the highest on record, while maintaining an economic growth target of around 5%.