Ding Xuexiang Urges Fiscal Management Reforms at Anhui Pilot Meeting

Chinese Vice Premier Ding Xuexiang visited Hefei, Anhui province, from August 25 to 26 to lead a symposium on scientific fiscal management pilots. Speaking to officials, Ding called for implementing a more proactive fiscal policy, refining the division of fiscal responsibilities between central and local governments, and advancing zero-based budgeting. He highlighted the need to maintain an appropriate macro tax burden, explore tax frameworks adapted to emerging business models, and revitalize state assets to support long-term economic stability.

The symposium signals Beijing's concrete policy roadmap for institutional fiscal reform amid local government balance-sheet strains. Adjusting central-local fiscal relations by shifting certain expenditure burdens upward to the central government, while boosting local fiscal autonomy, represents a structural attempt to ease grassroots budgetary pressure while securing funding for national strategic priorities.

Chinese Vice Premier Ding Xuexiang has called for accelerating scientific fiscal management and deepening institutional fiscal reforms to better support high-quality economic development, according to state media reports. Ding, who is a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks during a two-day inspection tour and symposium on pilot scientific fiscal management held in Hefei, Anhui province, on August 25 and 26. Addressing officials at the symposium, Ding underscored that public finance serves as the cornerstone and an important pillar of national governance. He instructed regional and departmental leaders to firmly establish their responsibilities in managing public finances and to maintain a proper balance between fiscal policy and broader economic health. According to official reports, Ding emphasized implementing a more proactive fiscal policy to foster stable economic expansion and optimize economic structure. He highlighted the need to maintain a reasonable overall macro tax burden while actively studying and establishing tax systems tailored to emerging business forms and new industries. He also pointed to the importance of revitalizing and putting idle or existing assets to productive use. A central focus of Ding's guidance involved the recalibration of central and local fiscal relations. He stressed the need to scientifically delineate administrative powers and expenditure responsibilities. In particular, Ding called for appropriately strengthening the central government's fiscal powers, increasing the central government's share of fiscal spending, and enhancing the autonomous financial resources available to local governments. To raise the efficiency of public resource allocation, Ding directed authorities to optimize expenditure structures, safeguard funding for major national strategic initiatives, and guarantee spending on basic public livelihoods. He also urged officials to deepen zero-based budgeting reforms, reinforce budget performance management, and systematically elevate the standard of public expenditure management across all levels.