Finance Ministry of China Outlines New Economic Policies for 2024
Ministry of Finance in China is crafting a new policy framework to support the nation’s economic and social development goals for 2024. Minister Lan Fo’an, speaking at a recent press conference in Beijing, highlighted the Ministry’s commitment to reinforcing counter-cyclical adjustments to navigate economic challenges and stabilise growth.
New Measures Target Real Estate and Debt Management
Lan announced that the Ministry has submitted new taxation policies aimed at revitalising the real estate sector, with approval expected soon. Additionally, measures to replace hidden local debt are set to begin immediately, which is expected to reduce financial risks at the local level. The Ministry in China is also speeding up the issuance of special treasury bonds to boost the core capital of major state-owned banks.
Another key priority is formulating policies to accelerate the use of special-purpose bonds. These bonds will be allocated for projects aimed at revitalising underutilised land, expanding land reserves, and converting commercial properties into affordable housing. This shift aims to address housing affordability challenges and make better use of existing land resources.
Expanded Fiscal Policies to Drive Growth in Key Sectors
Looking ahead to 2024, the Ministry of Finance of China will adopt more assertive fiscal policies. Lan outlined several priority areas, including:
- Deficit Flexibility: Expanding the fiscal deficit to support essential investments.
- Increased Special-Purpose Bonds: Expanding the issuance and use of special-purpose bonds, allowing more sectors to benefit from bond sales.
- Special Treasury Bonds for Security and Key Projects: Issuing ultra-long special treasury bonds to fund strategic national security and key infrastructure projects.
- Support for Industrial Upgrades and Consumer Goods: Increasing support for equipment upgrades and extending consumer trade-in programs to boost demand for durable goods.
- Enhanced Funding for Local Governments: Raising central government transfers to ensure funding for priorities like scientific innovation and public welfare.
These measures, Lan noted, are designed to sustain economic growth, strengthen essential infrastructure, and promote social stability. The policies reflect the focus China has on proactive financial planning and fiscal flexibility to meet the demands of a dynamic economy.
