Group 1 - The overall agenda of the Two Sessions in 2025 remains largely unchanged compared to 2024, with significant legislative activities including the review and approval of the revised National People's Congress and local people's congresses representative law [1][10][15] - The government work report sets a fiscal deficit target of around 4%, the highest since 2010, indicating a proactive stance on leveraging debt [3][17] - The emphasis on stabilizing asset prices, particularly in the real estate and stock markets, is a notable shift in macroeconomic management [4][5] Group 2 - The monetary policy continues to emphasize "appropriate easing," with plans for potential reserve requirement ratio (RRR) and interest rate cuts to maintain liquidity [2][24] - The government aims to implement a more active fiscal policy, with a focus on increasing public spending and supporting consumption through special bonds [3][19] - The report highlights the acceleration of reforms in the capital market, with a focus on enhancing the health of the stock market and supporting strategic industries [4][18] Group 3 - The real estate sector is undergoing a transformation towards higher quality and sustainability, moving from "incremental expansion" to "stock quality improvement" [5][19] - Employment stability is prioritized, with initiatives aimed at improving job matching efficiency and supporting entrepreneurship [6][18] - The government is set to support emerging industries such as quantum technology, embodied intelligence, and 6G, indicating a shift in focus towards future industries [7][18]

Core Viewpoint - The article discusses the 2025 fiscal budget proposal, highlighting a shift towards a more proactive fiscal policy with an emphasis on flexibility in deficit targets and a focus on key areas such as technology, security, and public welfare [1][2][3]. Group 1: Fiscal Policy Adjustments - The 2025 fiscal budget sets a deficit rate of "around 4%", allowing for potential adjustments mid-year, which is a departure from the rigid numerical targets used in previous years [1]. - The budget reflects a more pragmatic approach to nominal GDP growth estimates, revising the implicit nominal GDP growth rate down from 7.4% in 2024 to 4.9% in 2025 [4]. Group 2: Spending Focus - The fiscal spending for 2025 will increasingly target technology, security, and public welfare, with notable increases in allocations for education, diplomacy, national defense, and scientific research [2]. - In contrast, spending related to infrastructure, rural community development, and transportation is expected to decrease in importance [2]. Group 3: Revenue Adjustments - The budget anticipates a significant reduction in non-tax revenue, with a projected year-on-year decline of 14.2%, reflecting a strategy to lessen reliance on unsustainable revenue sources [3]. - Tax revenue expectations remain high, with positive growth targets set for most tax categories, excluding specific taxes like the tonnage tax on ships and vehicle purchase tax [3]. Group 4: Debt Issuance - The central government's bond issuance is projected to rise, with central government bonds accounting for 56.2% of total government bond issuance, marking a shift where central debt issuance surpasses local [5]. - This indicates a greater responsibility for counter-cyclical fiscal adjustments being placed on the central government [5]. Group 5: Challenges in Fund Revenue - The budget acknowledges potential difficulties in meeting government fund revenue targets due to the ongoing challenges in the real estate market and declining land use rights revenue [6].