--- title: China Daily - TIME - Partner Content - China pledges greater fiscal support in H2 description: China pledges greater fiscal support in H2 canonical: https://time.com/branded-content/china-daily/china-pledges-greater-fiscal-support-in-h2/ article:opinion: false article:content_tier: free article:published_time: 2026-08-27T10:02:40.714Z article:modified_time: 2026-08-26T12:06:33.117Z article:section: Paid Partner Content og:title: China Daily - TIME - Partner Content - China pledges greater fiscal support in H2 og:description: China pledges greater fiscal support in H2 og:url: https://time.com/branded-content/china-daily/china-pledges-greater-fiscal-support-in-h2/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt22e2b3ad4282ea18/6a8ed5c133f7f1465e84ab34/3._China_pledges_greater_fiscal_support_in_H2.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9 og:image:width: 1575 og:image:height: 886 og:image:alt: TIME og:type: article twitter:card: summary_large_image twitter:title: China Daily - TIME - Partner Content - China pledges greater fiscal support in H2 twitter:description: China pledges greater fiscal support in H2 twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt22e2b3ad4282ea18/6a8ed5c133f7f1465e84ab34/3._China_pledges_greater_fiscal_support_in_H2.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9 ---  # China pledges greater fiscal support in H2  _People browse cosmetics and perfumes in a shop on Qilou Old Street in Haikou, Hainan province, in May. GUO CHENG / XINHUA_ By ZHANG CHENXU and ZHOU LANXU China will accelerate fiscal spending and roll out fresh measures to strengthen fiscal-financial coordination in the second half of the year — moves that are expected to help shore up domestic demand, stabilize investment and put the broader economy on a firmer footing, officials and experts said. The planned upgrade in fiscal support follows a mixed performance in July, with new growth drivers maintaining strong momentum even as key consumption and investment indicators came under pressure — a weakness experts attributed in part to slower fiscal spending. With ample maneuvering room, faster bond issuance and quick rollout of new policy-based financial instruments, experts said a more expansionary fiscal stance in the second half should keep the economy on track to meet its full-year growth target of 4.5 to 5%. “We will speed up fiscal spending at an appropriate pace in the second half and improve the efficiency of funds use,” Liao Min, China’s vice-minister of finance, said at a news conference on Aug. 21. The pledge came as China’s general public budget expenditure reached 16.29 trillion yuan ($2.4 trillion) in the first seven months, up 1.3% year-on-year, according to data from China’s Ministry of Finance. General public budget revenue increased 5.8% to 14.37 trillion yuan during the same period. Boosting domestic demand will remain a key focus. By the end of July, local governments had issued 2.4 trillion yuan in new special-purpose bonds, Liao said, with more than 2 trillion yuan worth of such bonds and ultra-long-term special treasury bonds still to be issued and put into use in the second half. Song Yu, chief China economist at UBS Securities, said that as fiscal spending and bond issuance gather pace, government consumption should recover from its second-quarter slowdown and government investment is also likely to pick up. Vice-Minister Liao said that China has also refined a six-policy fiscal-financial coordination package backed by 100 billion yuan in central government funding, with the latest changes taking effect on Aug. 1. Introduced earlier this year, the package combines loan interest subsidies, financing guarantees and risk compensation, in order to better leverage public funds, spur consumption and drive private investment. Under the package, newly issued working capital loans for eligible micro, small and medium-sized private enterprises and all new credit card installment transactions became eligible for interest subsidies. The number of participating financial institutions in the two business loan subsidy programs increased to about 400 from about 100, while maximum subsidized loan amounts for businesses and subsidy caps for consumers were also raised. “The measures send a clear signal that policymakers are seeking to shore up confidence among private investors, encourage investment by micro, small and medium-sized enterprises and boost household consumption,” said Shi Yinghua, director of the Chinese Academy of Fiscal Sciences’ Research Center for Macroeconomics. Li Xuhong, vice-president and professor at Beijing National Accounting Institute, said the broader subsidy coverage could magnify the impact of a relatively modest fiscal outlay by leveraging more bank lending, helping to spur consumer spending. In the seven months since its rollout, the package has benefited residents on about 113 million occasions and supported around 6.22 million enterprises, the ministry said. Further measures are in the pipeline. “We are working on additional fiscal-financial coordination measures, which will be rolled out in the second half,” Vice-Minister Liao said. Su Jian, director of Peking University’s National Center for Economic Research, said the next step should be “to shift from subsidizing interest payments to bolstering household incomes.” Direct transfers to households in categories such as childcare, pensions and medical insurance would provide a more fundamental boost for consumption, he said. Liao said the ministry is also pressing ahead with the consumer goods trade-in program, allocating 187.5 billion yuan so far this year and helping generate about 1.32 trillion yuan in related sales. Luo Zhiheng, chief economist and head of the research institute at Yuekai Securities, suggested further refining the trade-in program while broadening consumption-support policies to cover services. On the prospect of further fiscal support, a key focus for markets, Liao said the ministry would move promptly to formulate and roll out practical and effective measures in the second half as economic conditions evolve. [](https://www.chinadaily.com.cn/) ## China Daily Website - Connecting China Connecting the World Since its launch in 1981, China Daily has grown to become the nation’s leading English-language newspaper. 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