China Boosts Fiscal Spending to Spur Growth
China increased fiscal spending by 2.6 percent in the first quarter to reach 7.47 trillion yuan. Beijing is accelerating outlays to meet annual growth targets.
China has significantly ramped up its fiscal spending during the first quarter of 2026, as the government intensifies efforts to insulate the domestic economy from global volatility and a persistent property market slump. According to data released by the finance ministry on Friday, fiscal expenditure rose 2.6% year-on-year in the January–March period, a notable acceleration from the 1% increase recorded throughout 2025.
Total fiscal outlays reached 7.47 trillion yuan, which represents approximately 24.9% of the annual budgeted expenditure. This marks the highest first-quarter spending ratio in recent years. Meanwhile, fiscal revenue grew by 2.4% to reach 6.16 trillion yuan. The aggressive deployment of capital comes as policymakers face mounting pressure to meet annual growth targets amid geopolitical tensions in the Middle East and domestic financial headwinds. The currency exchange rate remains a focal point for trade stability, with the USD/CNY currently trading near 6.8377.
