Overview

The year 2024 was a crucial year for achieving the objectives and tasks set forth in the 14^th Five-Year Plan (2021-2025). Facing a complex and challenging environment with increasing external pressures and internal difficulties, all regions and departments, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, thoroughly implemented the guiding principles of the 20^th CPC National Congress and the second and third plenary sessions of the 20^th CPC Central Committee. In line with the decisions and plans of the CPC Central Committee and the State Council, they fully, accurately, and comprehensively implemented the new development philosophy, accelerated the establishment of a new development pattern, and made solid progress in advancing high-quality development. The country achieved its key development objectives for the year, taking new and steady steps toward Chinese modernization.

Finance departments at all levels adhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implemented the decisions and plans of the CPC Central Committee and the State Council, and maintained a proactive fiscal policy with appropriately increased intensity and enhanced quality and efficiency. They have effectively implemented existing policies, introduced and rigorously implemented a package of incremental policies, strengthened budget execution and management, and reinforced macroeconomic policy coordination. These efforts boosted economic recovery and high-quality development.

First, we intensified efforts to implement existing and incremental fiscal policies. We maintained a high level of fiscal expenditure, with a deficit of 4.06 trillion yuan ($555.44 billion) and total national general public budget expenditure exceeding 28 trillion yuan for the year. One trillion yuan worth of ultra-long-term special government bonds were issued, with strengthened oversight over the use of funds. We effectively utilized the funds raised through additional treasury bonds to support post-disaster recovery and enhance disaster prevention, mitigation, and relief capabilities. The issuance and utilization of local government special-purpose bonds were accelerated, supporting over 40,000 projects. We promptly introduced a package of incremental fiscal policy measures and expedited their implementation. We adjusted tax policies in line with the elimination of relevant standards for ordinary and non-ordinary housing. We issued special-purpose bonds to support land reserves and the purchase of commodity housing stock for use as government-subsidized housing. Additionally, we raised the standards for national scholarships and grants while expanding policy coverage, increased the cap on government-subsidized student loans, and lowered interest rates of such loans. Before the 2024 National Day, one-time living subsidies were provided to over 11 million individuals in need.

Second, we took solid steps to promote high-quality development. We actively supported development in science and technology, with substantial increase in central government spending on science and technology as well as basic research. We issued guidance on major preferential tax and fee policies for supporting the development of manufacturing, scientific and technological innovation, and corporate mergers and restructurings. Pilot programs were launched in selected cities for new technological transformation in manufacturing and the digital transformation of small and medium-sized enterprises (SMEs).  We coordinated funding to support the development of high-standard farmland and expanded the coverage of full-cost insurance and planting income insurance policies. These efforts achieved full nationwide coverage for the three major grain crops of rice, wheat, and corn, as well as gradual expansion of insurance coverage for soybean crops. We also advanced regional coordinated development and continued efforts to strengthen pollution prevention and control.

Third, we actively supported initiatives to improve people's standards of living. Transfer payments from the central government to local governments remained above 10 trillion yuan, with more financial resources channeled to lower-level governments, so that the "three priorities" of people’s basic well-being, payment of salaries and normal government functioning at the primary level were ensured. We continued the implementation of temporary policies to reduce unemployment and work-related injury insurance premiums. Efforts were made to enhance the quality and equity of basic education, promote high-quality and inclusive preschool education, and support the balanced development of compulsory education and the distinctive development of regular senior high schools. The national living subsidy standards for financially disadvantaged primary and secondary school students were raised, and the management and oversight of the use of the nutritious meal subsidies were strengthened. We also increased the minimum basic pension standard for urban and rural residents, raised the per-capita government subsidies for basic public health services and basic medical insurance for urban and rural residents. Pensions and living subsidies for entitled groups were increased. Additionally, we supported emergency rescue and relief efforts for disaster-affected populations.

Fourth, we made greater efforts to prevent and defuse risks in key areas. Tapping into various resources through multiple channels, we implemented a package of measures to defuse debt risks. The local government debt ceiling was raised by 6 trillion yuan to replace outstanding hidden debts. Approval and allocation for this program has been granted on a one-time basis, with its implementation to be carried out on a yearly basis. The quota for local government debt replacement came into effect the day after all statutory procedures had been completed. We supported the transformation and reform of local government financing platforms and worked to prevent and defuse major financial risks. We also leveraged a variety of instruments, including local government special-purpose bonds, special funds, and taxation policies, to help stem the downturn and restore stability in the real estate market.