Chinese Finance Minister Lan Fo'an speaks at a press conference held by the State Council Information Office on fiscal reform and development achievements in the 14th Five-Year Plan period (2021-2025) in Beijing, capital of China, Sept. 12, 2025. [Photo/Xinhua]

During the 14th Five-Year Plan period (2021-2025), China's fiscal strength has increased, supporting economic growth and improving people's livelihoods, while also containing risks and advancing reform, according to Finance Minister Lan Fo'an.

Lan said at a press conference on Friday that progress has been made in key areas during the period, including stronger fiscal capacity with rising revenue and expenditure, more proactive fiscal macro regulation, greater input into people's livelihoods, effective prevention and control of fiscal risks, deeper fiscal and tax reform, and broader international financial cooperation.

Fiscal strength

During the period, the country's general public budget revenue is expected to reach 106 trillion yuan (about 14.93 trillion U.S. dollars), up 19 percent from the 13th Five-Year Plan period (2016-2020), according to data from the Ministry of Finance.

Local fiscal capacity has also seen steady growth, with 16 provincial-level regions posting revenue increases of over 20 percent in 2024 compared to 2020. Seven regions reported revenue above 500 billion yuan each, including two exceeding 1 trillion yuan, the data showed.

Government spending has reached an unprecedented level, with general public budget expenditure over the 14th Five-Year Plan period expected to exceed 136 trillion yuan, up 26 trillion yuan, or 24 percent, from the 13th Five-Year Plan period.

Over the past four years, the country's economy has grown at an average annual rate of 5.5 percent, contributing about 30 percent to global economic growth.

People-centered spending

China's fiscal policy has increasingly prioritized people's livelihoods, ensuring that the benefits of Chinese modernization are shared more broadly and fairly among the population, said Lan.

During the 14th Five-Year Plan period, general public budget allocations included 20.5 trillion yuan for education, 19.6 trillion yuan for social security and employment, 10.6 trillion yuan for health care, and 4 trillion yuan for housing.

Together with spending in other fields, fiscal input into people's livelihoods amounted to nearly 100 trillion yuan.

This year, the central budget earmarked 100 billion yuan for childcare subsidies and 20 billion yuan for gradually introducing free preschool education in response to public concerns and needs.

Debt under control

In the fourth quarter of last year, China rolled out a package of measures to tackle debt risks, which have taken effect as planned and continue to deliver results, said Lan.

By the end of last year, the nation's government debts totaled 92.6 trillion yuan, including 34.6 trillion yuan in central government debts, 47.5 trillion yuan in statutory local government debts and 10.5 trillion yuan in hidden local government debts, the minister noted.

China's government debt ratio stood at 68.7 percent at the end of 2024, markedly lower than the average levels of the G20 and the G7, he noted.

"Overall, China's government debt ratio is within a reasonable range and risks are manageable and under control," the minister said.

Looking ahead to the next five years, China will front-load part of the quota for new local government debt and adopt multiple measures to manage the risks from hidden local debts in an effort to better balance development and security.

Ample policy room

Asked about the next steps for fiscal macro regulation, Lan said that China's fiscal policy will continue to strike a balance between risk prevention and growth promotion, retaining ample room for future measures.

The long-term positive outlook for China's economy remains unchanged, providing a solid foundation for fiscal operations, Lan said.

Over the years, the country has accumulated more experience in macro regulation, enriched its policy toolkit, and significantly enhanced its capacity for counter-cyclical and cross-cyclical adjustments, according to Lan.

With improvements in institutional mechanisms for risk prevention in key areas and the gradual resolution of existing risks, China's fiscal policy is now better positioned to meet future challenges, said Lan.

The minister said the finance authorities will continue to maintain the continuity and stability of policies, strengthen forward-looking assessments, keep policy tools in reserve, and bolster high-quality economic and social development through fiscal efforts.