SCIO briefing on 'high-quality achievements during the 14th Five-Year Plan period': Fiscal reform and development

中文

Speakers:

Mr. Lan Fo'an, minister of finance

Mr. Liao Min, vice minister of finance

Mr. Wang Dongwei, vice minister of finance

Ms. Guo Tingting, vice minister of finance

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Sept. 12, 2025

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are continuing to hold the series of briefings titled "high-quality achievements during the 14th Five-Year Plan period." We are very pleased to have invited Mr. Lan Fo'an, minister of finance, to brief you on fiscal reform and development achievements during the 14th Five-Year Plan period, and to answer your questions. Mr. Liao Min, Mr. Wang Dongwei and Ms. Guo Tingting, all vice ministers of finance, are also present today.

Now, I'll give the floor to Mr. Lan for his introduction.

Lan Fo'an:

Thank you. Good afternoon. It is a great pleasure to speak with you today.

First of all, on behalf of the Ministry of Finance (MOF), I would like to extend my sincere gratitude to you for your long-term interest in and support for the finance work. Next, I will briefly introduce the major achievements in fiscal development during the 14th Five-Year Plan period.

During this period, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, the whole country worked together with determination and made significant achievements in economic and social development. The fiscal departments have resolutely implemented the decisions and arrangements of the CPC Central Committee, adhered to the principle of seeking progress while maintaining stability, and promoted reform and innovation. They withstood risks and challenges, expanded development space, continuously enhanced the national financial strength and improved efficiency. The role of finance as the foundation and an important pillar of national governance became more prominent, providing a solid guarantee for the steady and long-term development of the Party and the country, and strong support for meeting the people's aspirations for a better life. I will now introduce six key aspects of these efforts.

First, the nation's financial strength has been greatly enhanced, concentrating financial resources to accomplish many major tasks. On the one hand, China's income pie has grown significantly. During the 14th Five-Year Plan period, the national general public budget revenue is expected to reach 106 trillion yuan (around $14.89 trillion), an increase of 17 trillion yuan compared to the 13th Five-Year Plan period, with growth of around 19%. The financial strength of local governments has steadily increased. According to data from 2024, the fiscal revenue of 16 provinces has increased by more than 20% compared to 2020; and seven provinces have exceeded 500 billion yuan, while two of these provinces have exceeded 1 trillion yuan. On the other hand, the intensity of expenditure is unprecedented. The national general public budget expenditure is expected to exceed 136 trillion yuan during these five years, an increase of 26 trillion yuan compared to the 13th Five-Year Plan period, and growth of 24%. At the same time, the fiscal structure is continuously improving, with more concrete funding going toward key development projects and initiatives that directly improve people's lives.

Second, fiscal macro control is more proactive and effective, promoting qualitative and effective improvements and reasonable quantitative growth of the economy. During the 14th Five-Year Plan period, fiscal policy became better aligned with the evolving economic landscape — becoming even more proactive, adopting a more strategic and targeted approach, and serving as a key driver for stable and healthy economic growth. On the one hand, counter-cyclical adjustments have been strengthened to smooth out short-term fluctuations. For example, in the second and third quarters of last year, the downward pressure on China's economy increased significantly. The fiscal departments implemented the central government's arrangements and quickly introduced a package of incremental policies at the end of September, effectively promoting economic stabilization and recovery. On the other hand, cross-cyclical adjustments are being coordinated to enhance medium- and long-term development momentum. We are committed to supporting the expansion of domestic demand, assisting the development of new quality productive forces, and promoting the smooth flow of the economic cycle. In the past four years, China's economy has achieved an average growth rate of 5.5%, contributing to 30% of global economic growth.

Third, national finance is more weighted toward people's livelihoods, and the achievements of Chinese modernization are benefiting all people more fairly. In the national fiscal ledger, the heaviest and most substantial part has always been centered around people's livelihoods. During the 14th Five-Year Plan period, the national general public budget allocated 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 security. Including expenditures in other fields, fiscal investment in people's livelihoods was nearly 100 trillion yuan. This year, the national finance allocated 100 billion yuan for child care subsidies and 20 billion yuan to gradually implement free preschool education, actively responding to public concerns. It is fair to say that whether in bustling cities or remote villages, from toddlers just learning to speak to elderly people in their later years, people across the country are enjoying more extensive and higher-quality public services and social benefits.

Fourth, China has worked to prevent and defuse risks in key areas, promoting a positive interaction between high-quality development and high-level security. In terms of local government debt, we have strengthened regular supervision and established a "closed-loop" management system for legal debts. For implicit debt, we have orderly resolved existing debt and resolutely curbed the new debt, gradually narrowing the risks. In terms of grassroots financial operations, the central government has allocated nearly 50 trillion yuan in transfer payments to local governments over the past five years, maximizing the utilization of financial resources to ensure the three priorities: the well-being of the public, payment of salaries, and normal government functioning at the primary level. These efforts have ensured overall stability in local government finances. At the same time, we have coordinated efforts to halt the decline in prices and stabilize the real estate market, as well as promote reform and risk mitigation among small- and medium-sized financial institutions.

Fifth, fiscal and taxation reform and management have been advanced in depth to better serve the modernization of the national governance system and governance capacity. In terms of reform, there are three main focuses. First, we have focused on optimizing allocation and improving efficiency, deepening budget system reform, strengthening the coordination of funds, resources, and assets, and enhancing budget performance management to allocate funds effectively and save on unnecessary expenditures. Second, we have focused on efficiency and fairness, optimizing the tax system's structure, standardizing tax preferential policies, strengthening tax regulation, and continuously improving the tax system to ensure compatibility with the economic and social structure. Third, we have focused on mobilizing the enthusiasm of both the central and local governments, establishing an incentive and restraint mechanism for transfer payments to promote high-quality development. We have continuously optimized the division of fiscal powers and expenditure responsibilities between governments, further clarifying "who does what and who pays for it." In terms of management, we have focused on systematic, refined, standardized, and law-based approaches. Starting from the source of budget preparation, we have leveraged the supporting roles of expenditure standards and information technology to integrate fiscal management throughout the entire chain of fund usage, horizontally covering all departments and units, and vertically extending to grassroots levels in cities and counties.

Sixth, we have deepened and expanded international financial cooperation to better serve major-country diplomacy with Chinese characteristics. International financial cooperation is an important part of major-country diplomacy. The MOF is responsible for 26 multilateral and bilateral financial dialogue mechanisms and also serves as a window for 18 international organizations. We have actively practiced the concept of a community with a shared future for humanity, deeply promoted the reform of global economic governance, strengthened dialogue and coordination on macroeconomic policies, promoted the high-quality development of the Belt and Road Initiative, and supported the sound operation of institutions such as the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). For example, AIIB has been in operation for 10 years, with 110 members and a total financing scale exceeding $60 billion, serving as a model for promoting inclusive development globally. At the same time, we have expanded high-level opening-up, further reducing the overall tariff level to 7.3%. Through deepening pragmatic cooperation in the international financial field, our circle of friends for win-win cooperation has become larger and more stable. This has given developing countries a stronger voice and greater say in global affairs, garnering broad appreciation from the international community, especially from countries in the Global South.

These accomplishments exemplify China's high-quality economic and social development throughout the 14th Five-Year Plan period. They fully reflect the continuous enhancement of national strength and governance capabilities, and are a vivid practice of the Party's innovative theories in the field of finance. We deeply appreciate that the underlying logic sustaining these achievements has remained consistently clear: an unwavering commitment to and strengthening of the Party's overall leadership, a steadfast adherence to putting people first, and a consistent reliance on reform to solve problems.

Looking ahead to the 15th Five-Year Plan period, the MOF will focus on the goal of building China into a great modern socialist country in all respects. It will enhance fiscal macroeconomic control with greater efficiency, deepen fiscal and tax system reforms with greater intensity, and promote fiscal management more scientifically, thus contributing new fiscal strength to the advancement of Chinese modernization.

Next, my colleagues and I would be happy to answer your questions. Thank you.