China Advances Proactive Fiscal Policies Across Core Sectors

People's Daily reports that national fiscal revenue expanded steadily during the first three quarters of the year, based on data released by the Ministry of Finance. Expenditures directed toward priority fields, notably investments in people, received effective support. Financial authorities implemented proactive fiscal tools, including coordinated fiscal and financial measures and local government special bonds, to stimulate domestic demand and foster ongoing economic progress. National general public budget spending rose by 1% across the three-quarter duration. Key expenditure areas expanded, with health care spending rising by 7.7%, primarily driven by higher disbursements for child care subsidies. Social security and employment expenditures registered an increase of 5.2%, and funding dedicated to housing guarantees climbed by 3.1%. Authorities expanded policy tools supporting micro, small, and medium-sized enterprises to align with operational demand. Initial loan interest discount policies centered on fixed-asset loans, but officials added working capital loans to the eligible scope starting in August to assist daily operational turnover. This policy adjustment helped drive substantial new working capital lending across a two-month span. Local authorities also accelerated the issuance schedule for special bonds to finance priority projects. Between January and September, national issuance reached 81% of the targeted progress for new special bonds. The operational pace gained clear momentum in September compared with issuance levels recorded during the same period in the preceding year.

Following the nationwide implementation of home purchase mortgage interest discounts on October 1, handling banks observed that numerous households buying homes felt practical reductions in monthly loan payments, granting added financial flexibility for daily living expenditures and children's schooling needs.