How to understand the fiscal policy arrangements for 2026

WealthCoffee · 2026-03-06T02:22:08+00:00

At the Fourth Session of the 14th National People's Congress in 2026, Premier Li Qiang emphasized in his report the continued implementation of proactive fiscal policies, optimizing the expenditure structure, ensuring people's livelihood, while advancing fiscal and tax system reforms and resolving local government debt risks to promote consumption and investment, and enhance fiscal sustainability.

WealthCoffee

2026-03-06 02:22:08

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On the morning of March 5, 2026, the Fourth Session of the 14th National People’s Congress opened, and Premier Li Qiang delivered the “Government Work Report” (hereinafter referred to as the “Report”). The report proposed to “continue implementing more proactive fiscal policies,” “maintain a substantial scale of fiscal expenditure, continuously optimize the expenditure structure, and focus more on supporting consumption, investing in people, and ensuring people’s livelihoods,” “solidify the bottom line of ‘three guarantees’ at the grassroots level,” “promote fiscal and tax system reforms,” “standardize tax incentives and fiscal subsidies,” and “actively and orderly resolve local government debt risks,” among other measures.

Overall, the fiscal policy and fiscal and tax system reform plans for 2026 focus on current issues such as promoting consumption, expanding investment, stabilizing growth, ensuring the operation of grassroots finances, resolving debt risks, and supporting the construction of a unified national market. They also aim to stimulate the enthusiasm of local governments and improve fiscal sustainability in the medium to long term.

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