Minister of Finance Lan Foan: Greater Focus on Investment in People, Increasing the Proportion of Government Investment in Livelihood

Securities Times Reporter He Jueyuan and Qin Yanling

On March 22, China’s Minister of Finance, Lan Fofan, attended the China Development High-Level Forum 2026 Annual Conference and delivered a keynote speech. Lan Fofan stated that as China enters the “14th Five-Year Plan” period, fiscal policy will closely focus on promoting high-quality development, maintaining a proactive policy tone, and balancing necessary deficit levels and spending scales. It will strengthen counter-cyclical and cross-cyclical adjustments, continuously optimize the expenditure structure, enhance scientific fiscal management, and improve the precision and effectiveness of policies. In policy design and implementation, expanding domestic demand, investing in people, and open sharing will be prioritized.

Lan Fofan emphasized that the Ministry of Finance will pay more attention to expanding domestic demand, promoting smooth domestic circulation, and enhancing endogenous development momentum. To address the current economic imbalance of strong supply and weak demand, comprehensive use of policy tools such as deficits, special bonds, and loan interest subsidies will be employed. Strengthening coordination between fiscal and financial policies will stimulate potential consumption, expand effective investment, and build a strong domestic market.

On one hand, greater efforts will be made to boost consumption. From both current and long-term perspectives, efforts will focus on releasing short-term consumption potential by increasing inclusive policies directly benefiting consumers, expanding goods and service consumption, and cultivating new growth points for consumption. Simultaneously, long-term consumption capacity will be enhanced by supporting employment, improving the social security system, strengthening the roles of taxation and transfer payments, and increasing residents’ income through multiple channels. Combining benefits for people’s livelihoods with consumption promotion will create lasting economic growth momentum.

On the other hand, efforts will be made to expand effective investment. China still possesses enormous investment potential, with key focus on improving government investment efficiency and stimulating private sector investment vitality. The Ministry of Finance will optimize the structure of government investment, effectively utilize ultra-long-term special bonds, local government special bonds, and central budget investments, focusing more on new productive forces, new urbanization, and other key areas. Investments will target strategic projects that improve total factor productivity, supporting major projects outlined in the “14th Five-Year Plan.” The Ministry will improve fiscal and tax support policies to help private enterprises share risks, reduce financing costs, and motivate private investment.

Lan Fofan stated that the Ministry of Finance will pay more attention to investing in people, improving people’s livelihoods, and expanding human capital accumulation to strengthen development resilience. Over the next five years, China will face a large population base and significant demographic shifts, posing higher demands on public policies and social governance. Fiscal policies will adapt to these trends by emphasizing investment in people, closely integrating physical and human investments, and continuously consolidating medium- and long-term development advantages.

“In the next five years, we will do our best within our capacity, continue to increase efforts to safeguard and improve people’s livelihoods, reasonably raise the proportion of public service expenditure in fiscal spending, and increase government investment in people’s livelihoods, thereby expanding development space while meeting people’s needs,” Lan Fofan said.

He also mentioned that the Ministry of Finance will identify key entry points for investing in people, implement targeted policies for different groups and sectors, and improve the relevance of fiscal support for human development. Focus will be placed on enhancing the equality and accessibility of basic public services, addressing shortcomings, promoting more public services at the grassroots level, covering rural areas, and supporting remote regions and vulnerable populations. Public services should be portable and accessible, aiming to solve urgent issues such as elderly care and medical treatment. To strengthen human resource development and overall human development, efforts will be made to advance education, science and technology, and talent development, supported by fiscal policies and funding guarantees.