How can fiscal policy become more proactive? Lan Fo'an: Provide sufficient funding scale and amplify policy coordination effects

Caixin: In 2026, the deficit-to-GDP ratio will remain at a historic high of around 4%, with ultra-long special bonds and local government专项 bonds maintaining high levels, and a 100 billion yuan fiscal and financial coordination fund to promote domestic demand will be launched. Minister of Finance Lan Fuan stated at a press conference on March 6 that in 2026, China will continue to implement a more proactive fiscal policy, reflected not only in the scale of funds and sufficient policy strength but also in strengthening policy coordination to further amplify effects.

Lan Fuan said that in recent years, fiscal policy has always adhered to an active orientation. In 2025, China first implemented a more proactive fiscal policy, with macroeconomic regulation further intensified. In 2026, the country will continue to maintain the “more proactive” tone, keeping the力度 unchanged based on the overall expansion in 2025. This arrangement fully considers the profound and complex changes in the current domestic and international situation, balancing counter-cyclical and cross-cyclical adjustments. It can effectively hedge short-term fluctuations, promote the economy to operate within a reasonable range, and also facilitate structural optimization and enhance economic resilience, providing a solid foundation for a good start and good progress in the 14th Five-Year Plan.