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

Shou Xiaoli:

One last question, please.

Beijing Daily:

Mr. Lan just mentioned that the most significant and substantial part of the national financial ledger has always been people's livelihoods. The 14th Five-Year Plan period marked the first five years since China achieved the goal of building a moderately prosperous society in all respects. During this period, people's expectations for a better life have continued to rise. What has the MOF done to ensure and improve people's livelihoods? Thank you.

Lan Fo'an:

Thank you for your questions. The public's well-being is of paramount importance. Enabling people to live happy lives is our top priority. Since the 14th Five-Year Plan period, we have prioritized ensuring and improving people's livelihoods alongside high-quality development. Financial investment in people's livelihoods accounts for more than 70% of the national general public budget expenditure, with more resources flowing directly to our people. In recent years, we have strived to achieve four priorities.

First, we have prioritized greater fairness by strengthening the social safety net, continuously expanding coverage and raising benefit levels. Currently, over 1.07 billion people are enrolled in basic pension insurance, while 1.327 billion participate in basic health insurance. Additionally, more than 45 million people receive basic living assistance. China has established the world's largest and most comprehensive social security system. Not only is the scope of protection expanding, but the level of protection is also improving. During the 14th Five-Year Plan period, the financial subsidy standard for residents' medical insurance rose from 580 yuan per person per year to 700 yuan, while minimum living standards rose approximately 20% in both rural and urban areas. Meanwhile, we have established an innovative rapid allocation mechanism for disaster relief funds. During the 14th Five-Year Plan period, a total of 2.59 trillion yuan was allocated to support disaster relief and facilitate the recovery of production and livelihoods.

Second, we have emphasized greater balance in basic public services between urban and rural areas, as well as across different regions. Policy and resource support for underdeveloped areas has been strengthened. During the 14th Five-Year Plan period, the scale of transfer payments for ensuring equal access to basic public services increased from 1.9 trillion yuan in 2021 to 2.7 trillion yuan in 2025, representing an average annual growth rate of 9.6%. Efforts to shore up weak links in basic public services are accelerating. To date, all of China's more than 500,000 administrative villages have been connected to paved roads. Express delivery coverage has exceeded 95%, tap water accessibility has reached 94%, and the rate of household waste collection and disposal has surpassed 90%. Urban basic public services are continuously improving. For example, we have supported the financing and creation of approximately 7.8 million units of various types of affordable housing and the renovation of 160,000 old residential communities, ensuring urban disadvantaged residents' access to housing.

Third, we have prioritized inclusiveness by promoting the accessibility of public resources such as education and health care. All urban and rural students receiving compulsory education are exempt from tuition and miscellaneous fees and receive free textbooks. Approximately 20 million students from financially disadvantaged families receive living subsidies, while around 13 million students from migrant worker families have had their compulsory education subsidies transferred to their urban schools. With the fall semester just underway, tuition and education fees for the final year of kindergarten have also been waived, a policy expected to benefit 12 million children. More than 80 billion yuan has been allocated to support the development of key clinical specialties and regional medical capabilities. This funding also strengthens the cultivation of multi-tiered health professionals, significantly enhancing the service capacity of medical institutions at all levels. These beneficial policies from the Party have truly delivered tangible benefits to millions of households.

Fourth, we are prioritizing accessibility by creating "circles of happiness," designed to better satisfy diverse livelihood needs right at people's doorsteps. Since the start of the 14th Five-Year Plan period, we have actively advanced the direct settlement of cross-province medical expenses, benefiting 560 million patient visits and saving the public 590 billion yuan in upfront payments. We also aim to explore service models such as home-based elderly care and custodial care services, and support the implementation of child-friendly and elderly-friendly renovations in aging residential communities. We have also supported nearly 50,000 public libraries and museums in offering free access to the public, many of which have become popular photo spots and leisure destinations.

Ensuring people's well-being is an ongoing journey that requires continuous effort for long-term success. During the 15th Five-Year Plan period, we will adopt a people-centered approach by safeguarding and improving livelihoods. Financial resources will be directed toward areas that matter most to the public's aspirations for a better life, while fiscal policies will be concentrated on meeting people's most urgent needs. Thank you.

Shou Xiaoli:

I'd like to thank Mr. Lan, thank all our speakers and thank all the journalists for being here today. This concludes today's press conference. Goodbye, everyone!

Translated and edited by Guo Yiming, Yang Xi, Wang Xingguang, Liu Caiyi, Zhang Yuxin, Yang Chuanli, Xu Kailin, Zhu Bochen, Chen Xinyan, Wang Qian, Zhang Junmian, Liu Sitong, Gong Yingchun, Li Huiru, Huang Shan, Liu Qiang, Zhang Rui, Zhou Jing, David Ball, Jay Birbeck and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.