Core Viewpoint - Expanding domestic demand is a crucial strategy for China's economic development, with fiscal policy playing a key role in stimulating consumption and investment to drive high-quality economic growth [1][2]. Group 1: Fiscal Policy and Economic Strategy - The 2025 Central Economic Work Conference emphasizes "demand-led growth and building a strong domestic market" as a key task for the start of the 14th Five-Year Plan [1]. - Fiscal policy aims to boost consumption and expand effective investment through coordinated efforts on both supply and demand sides [1][3]. - The goal of fiscal policy is to ensure that residents "can consume, dare to consume, and are willing to consume," supported by institutional guarantees [1][2]. Group 2: Income and Consumption Support - The focus is on optimizing income distribution with goals to "raise the low, expand the middle, and adjust the high," implementing plans to increase income for urban and rural residents [1]. - Minimum wage standards are set to increase in several regions, with Jiangsu and Zhejiang provinces reaching a maximum of 2,660 yuan/month, which will also raise related benefits [1]. - Measures include enhancing tax and transfer payment systems to reduce income disparity and ensure residents have disposable income [1]. Group 3: Investment and Supply-Side Policies - Fiscal funds are directed towards inclusive sectors such as childcare, elderly care, and healthcare, which alleviates consumer concerns and encourages spending [2]. - A new round of consumption subsidies for replacing old products will be implemented, covering key areas like automobiles and home appliances, with subsidies for electric vehicles reaching up to 20,000 yuan [2]. - Policies focus on expanding investment and optimizing supply, leveraging fiscal funds to stimulate market activity and support private investment projects [2][3]. Group 4: Infrastructure and Long-term Investment - The 2026 fiscal policy will expand general budget expenditures and optimize government bond tools, focusing on new infrastructure and urban renewal [3]. - Coordinated fiscal policies are expected to release supply and demand effects, enhancing the willingness and ability of private capital to invest [3]. - Maintaining economic growth within a reasonable range is crucial for stabilizing expectations and boosting confidence, which is essential for unleashing consumption and investment potential [3].