Group 1 - The Ministry of Finance will focus on six key areas to implement a more proactive fiscal policy, including supporting employment and foreign trade, fostering new growth drivers, improving people's livelihoods, preventing risks in key sectors, and enhancing fiscal governance effectiveness [1][2][3] - The report emphasizes the importance of budget execution responsibility and aims to improve the efficiency of fund usage while ensuring fund security [1] - Specific measures include implementing consumption stimulus actions, providing fiscal subsidies for personal consumption loans, and encouraging private investment through local government bonds and special treasury bonds [1][2] Group 2 - The report highlights the need to strengthen employment support policies, including public employment services, vocational training, and stabilizing job positions for key groups [1][2] - It aims to enhance international economic cooperation by signing more free trade agreements and supporting enterprises in stabilizing orders and expanding markets [1][2] - The focus on nurturing new growth drivers includes promoting technological innovation, supporting the digital transformation of small and medium-sized enterprises, and creating a favorable environment for business development [2] Group 3 - The report outlines measures to improve social welfare, such as providing subsidies for elderly care services and implementing free preschool education [2] - It emphasizes the importance of coordinating major livelihood policies across departments to expand social security coverage and support low-income groups [2] - The Ministry of Finance will continue to implement a comprehensive debt management policy to address hidden debts and ensure stable fiscal operations [3] Group 4 - The report stresses the need for enhanced fiscal governance, including the implementation of various fiscal and tax reforms to improve resource allocation and budget management [3] - It calls for increased financial supervision and accountability at local and departmental levels to ensure effective use of fiscal funds [3] - The Ministry of Finance aims to align its fiscal policies with the goal of building a modern socialist country, focusing on high-quality fiscal planning and macroeconomic regulation [3]

Core Insights - The report indicates that China's economy is showing steady progress, with overall fiscal operations remaining stable in the first half of 2025 [1] Fiscal Performance - National general public budget revenue reached 11.56 trillion yuan, a year-on-year decrease of 0.3%, with the decline narrowing by 0.8 percentage points compared to the first quarter [1] - National general public budget expenditure was 14.13 trillion yuan, reflecting a growth of 3.4% [1] Policy Outlook - The report outlines six key areas for future fiscal policy focus, including the implementation of more proactive fiscal policies, support for employment and foreign trade stability, and fostering new growth drivers [2][3] Employment and Trade Support - Emphasis on enhancing employment policies, providing public employment services, vocational training, and supporting enterprises in stabilizing orders and expanding markets [2] Development of New Growth Drivers - Focus on strengthening industrial innovation and technology supply, promoting the transformation and upgrading of the manufacturing sector, and supporting the digital transformation of small and medium-sized enterprises [3] Social Welfare Improvements - Initiatives to enhance services for the elderly and children, including subsidies for elderly care services and the implementation of free preschool education [3] Risk Management - Continued efforts to prevent and mitigate risks in key areas, including the management of hidden debts and ensuring stable fiscal operations at the grassroots level [4] Governance Enhancement - Strengthening fiscal management and oversight, advancing fiscal reforms, and ensuring that fiscal resources are effectively utilized for development and public welfare [4]

Core Viewpoint - The report emphasizes that since 2025, China's fiscal policy has become more proactive, focusing on stabilizing employment, businesses, markets, and expectations, while enhancing coordination with other policies to promote sustained economic recovery [2][3]. Fiscal Policy Execution - The fiscal operation in the first half of 2025 was generally stable, with good budget execution and a continuous recovery in fiscal revenue, particularly in tax income [3]. - The central government allocated 300 billion yuan for long-term special bonds to support consumption, alongside 7.279 billion yuan for service industry development, aimed at stimulating consumption in rural areas [4]. Investment and Consumption - The fiscal policy has been working to boost consumption and expand investment, with the issuance of long-term special bonds starting in April, completing 42.7% of the annual issuance target in the first half, which is 17.7 percentage points faster than the previous year [4]. - A new special debt limit of 4.4 trillion yuan was fully allocated to local governments by April, achieving 49.1% of the annual limit in the first half, which is 11 percentage points faster than the previous year [4]. Foreign Trade and Investment - The Ministry of Finance has effectively utilized tariff adjustments to stabilize foreign trade and investment, implementing temporary import tariff rates lower than the most-favored-nation rates on 935 items since January 1, 2025 [5]. - The expansion of high-standard free trade zones and cooperation with trade partners on tax reductions has been highlighted as a strategy to enhance market confidence [5]. Fiscal Management Pilot - The Ministry of Finance has initiated a pilot program for fiscal management in 12 provinces, focusing on improving resource allocation and budget management, with 11 key tasks set to achieve breakthroughs in two years [7][8]. - A national platform for the sharing of state-owned assets has been established, facilitating over 200 asset adjustments and saving more than 40 million yuan in budget funds [8]. Future Fiscal Policy Directions - The report outlines six key areas for future fiscal policy, including the effective use of proactive fiscal measures, support for employment and foreign trade, fostering new growth drivers, improving living standards, risk prevention, and enhancing fiscal governance [11][12][13].

Core Viewpoint - The article discusses the recent report from the State Council regarding the execution of this year's budget, highlighting the flexible and proactive approach to fiscal macro-control, with an emphasis on timely adjustments based on changing circumstances [3][4]. Summary by Sections Fiscal Policy Focus - The report outlines seven key areas for future fiscal work, with the first being the effective utilization of a more proactive fiscal policy, including a total new government debt scale of 11.86 trillion yuan this year, an increase of 2.9 trillion yuan from the previous year [3][4]. Consumer Support Measures - The report emphasizes the implementation of interest subsidy policies for personal consumption loans and service industry loans to stimulate consumption, alongside ongoing special actions to boost consumer spending [4][5]. Employment and Trade Stability - The second focus is on supporting employment and foreign trade stability, with increased policy support for public employment services, vocational training, and helping enterprises maintain orders and expand markets [5][6]. New Growth Drivers - The third area is fostering new growth drivers by enhancing industrial innovation and technology supply, promoting key core technology breakthroughs, and supporting the transformation and upgrading of the manufacturing sector [5][6]. Social Welfare Enhancements - The fourth focus is on improving and safeguarding people's livelihoods, including subsidies for elderly care and childcare, with a budget of 1 billion yuan allocated for childcare subsidies [6][7]. Risk Management - The fifth area addresses the prevention and resolution of key sector risks, including managing hidden debt risks and ensuring basic livelihood protections, with a comprehensive debt management policy in place [6][7]. Fiscal Governance Improvement - The sixth focus is on enhancing fiscal governance effectiveness, including reforms in fiscal resource allocation, zero-based budgeting, and tax policy adjustments [7][8]. Fiscal Discipline - The seventh area stresses the importance of adhering to frugal fiscal practices, ensuring that new projects align with economic and financial capabilities [8].

Core Viewpoint - The report emphasizes the need for a more proactive fiscal policy to support economic development and social stability, with a focus on timely adjustments based on changing circumstances [1][2]. Group 1: Fiscal Policy Deployment - The report outlines seven key areas for future fiscal policy, with the first being the effective utilization of a more proactive fiscal policy [1]. - A significant increase in government debt is noted, with a total new government debt scale of 11.86 trillion yuan this year, an increase of 2.9 trillion yuan compared to the previous year [1]. Group 2: Consumer Support and Employment Stability - The report highlights the implementation of interest subsidy policies for personal consumption loans and service sector loans to boost consumption [2]. - It stresses the importance of supporting employment and foreign trade, including enhancing public employment services and vocational training [2]. Group 3: Social Welfare and Risk Management - The report emphasizes improving and safeguarding people's livelihoods, including subsidies for elderly care and childcare [3]. - It outlines the need to prevent and mitigate risks in key areas, such as addressing hidden debt risks and ensuring basic livelihood protections [3][4]. Group 4: Financial Governance and Efficiency - The report calls for enhancing fiscal governance effectiveness, including reforms in fiscal resource allocation and tax policy adjustments [4]. - It mentions the ongoing zero-based budgeting reforms aimed at breaking the rigid patterns of fiscal spending [4]. Group 5: Fiscal Discipline - The report stresses the importance of adhering to frugal spending practices, ensuring that new projects align with economic and fiscal capabilities [4].