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 historical 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 launched to stimulate domestic demand. 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力度 but also in strengthening policy coordination to further amplify effects.

Lan Fuan said that in recent years, fiscal policy has always maintained an active orientation. In 2025, China first implemented a more proactive fiscal policy, with macroeconomic regulation further strengthened. In 2026, the country will continue to adhere to the “more proactive” tone, maintaining the力度 established in 2025’s overall expansion. This arrangement fully considers the profound and complex changes in the current domestic and international situation, balancing counter-cyclical and cross-cyclical regulation needs. It can effectively hedge short-term fluctuations, promote economic operation within a reasonable range, and also facilitate structural optimization and enhance economic resilience, providing solid support for a good start and a strong beginning to the 14th Five-Year Plan.