ECONOMY

China Signals Continued Stimulus With Elevated Deficits in 2026

Published: Jan. 21, 2026 1:29 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Liao Min, vice minister of finance, speaks at a press conference held by the State Council Information Office on Jan. 20, 2026. Photo: VCG

China will maintain elevated budget deficits and government debt levels in 2026 as part of a broader strategy to sustain stimulus and keep public spending on an upward trajectory, Vice Finance Minister Liao Min said Tuesday.

Speaking at a news conference in Beijing, Liao said the 2026 fiscal approach would build on the expansive stance adopted in 2025. The government aims to further enlarge its overall “fiscal spending plate” while taking into account medium- and long-term sustainability.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China will keep high budget deficits and government debt in 2026, expanding fiscal spending to sustain stimulus, following a record 4% budget deficit ratio in 2025.
Spending will prioritize consumption, welfare, and public investment, while reforms target more efficient local government debt issuance and reduced excessive fiscal subsidies.
Priority spending in social security, technology, education, and health reached over 10 trillion yuan ($1.4 trillion) by November 2025, with special bond issuance up 45.5% year-on-year.

AI generated, for reference only