Ministry of Finance: Leveraging More Social Capital and Financial Resources to Drive Investment in Technological Innovation

Securities Times Reporter He Jueyuan

On March 17, the Ministry of Finance released the “2025 China Fiscal Policy Implementation Report” (hereinafter referred to as the “Report”), which states that 2026 marks the beginning of the “14th Five-Year Plan.” The Ministry of Finance will continue to implement more proactive fiscal policies, enhancing precision and effectiveness, optimizing incremental growth, revitalizing existing resources, and focusing on expanding domestic demand, improving structural adjustments, increasing economic momentum, and benefiting people’s livelihoods. It will also prioritize stabilizing employment, enterprises, markets, and expectations, promote reforms, strengthen management, prevent risks, and increase efficiency to achieve qualitative improvements and reasonable quantitative growth of the economy.

The “Report” indicates that in 2026, the implementation of more proactive fiscal policies will mainly be reflected in five areas: first, expanding the scope of fiscal expenditure to ensure necessary spending; second, optimizing the composition of government bond tools to better leverage bond benefits; third, improving the efficiency of transfer payments to enhance local autonomous financial resources; fourth, continuously optimizing the expenditure structure and strengthening support in key areas; fifth, enhancing fiscal and financial coordination to amplify policy effects and better stimulate the vitality of micro-entities.

To support the development of a strong domestic market, the Ministry of Finance will continue to allocate ultra-long-term special national bonds for “dual” construction projects and “two new” initiatives, while optimizing policy implementation. It will implement a comprehensive set of fiscal and financial coordination policies aimed at stimulating domestic demand, focusing on two key areas: encouraging private investment and promoting residents’ consumption. It will also support efforts to reduce corporate financing costs, enhance residents’ consumption capacity, and expand the supply of high-quality services.

To accelerate high-level technological independence and self-reliance, the Ministry of Finance will continue to increase investments, improve diversified mechanisms for technological innovation funding, and mobilize more social capital and financial resources into technological innovation. It will optimize the structure of science and technology expenditures, with a further focus on basic research, applied basic research, and national strategic technological tasks, to stimulate innovation and creative vitality.

To strengthen efforts to safeguard and improve people’s livelihoods, the Ministry of Finance will enhance employment support, stabilize and expand employment among key groups. It will further increase fiscal investment in education, implement policies to gradually provide free preschool education, and ensure the implementation of student financial aid policies. It will raise the per capita fiscal subsidy standard for urban and rural residents’ basic medical insurance, improve healthcare service capacity and保障水平. It will also完善社会保障体系，提高城乡居民基础养老金。

To improve fiscal scientific management, the Ministry of Finance will deepen reforms of the fiscal and tax system, accelerate the development and issuance of policies to improve the budget system; advance pilot programs for scientific fiscal management; further expand the scope of zero-based budgeting reforms in central departments; accelerate the construction of expenditure standard systems; improve the local tax system; optimize transfer payment structures, enhance transfer payment management, strengthen fund integration and coordination, and better meet local needs.

(Edited by: He Chong)

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