# fiscal policy
Latest news and articles about fiscal policy
Total: 12 articles found
Takaichi’s Bold Start: Japan’s Lurch Right Risks Debt, Inflation and Social Strain
Sanae Takaichi’s elevation to prime minister follows a decisive LDP electoral victory and ushers in a policy mix of aggressive, debt‑funded fiscal expansion targeted at defence and high‑tech industries. Critics warn this approach risks worsening Japan’s already massive public debt burden, accelerating yen depreciation and stoking inflation and social division, while political scandals and intra‑party factionalism threaten the government’s stability.
Takaichi’s Electoral Mandate Fuels Fiscal Boldness — and Fresh Downward Pressure on the Yen
Prime Minister Sanae Takaichi’s governing coalition won a decisive lower-house majority, clearing the path for expansionary fiscal measures such as cuts to the food consumption tax and a new sovereign wealth fund. Markets have swiftly priced in a higher probability of yen weakness and a Japanese equity rally, while analysts warn that persistent fiscal loosening could exacerbate sovereign-financing pressures and elevate the risk of market intervention if the currency weakens beyond key thresholds.
China’s State Firms See Profits Slip in 2025 Despite Flat Revenues, Raising Questions for Beijing’s Growth and Reform Strategy
China’s state-controlled firms posted a 6.3% drop in profits for 2025 despite a 0.5% rise in revenue, with total profits around ¥4.04 trillion and an asset‑liability ratio of 65.1%. The data highlight margin pressure across SOEs and present Beijing with a choice between fiscal support and deeper restructuring.
Beijing Orders 2026 Tax Overhaul to Boost Local Budgets and Expand Social Insurance
China’s tax authority has announced a 2026 push to deepen tax reform, expand legally authorised local taxes and strengthen social insurance through national pension pooling, provincial medical insurance coordination and accelerated long‑term care pilots. The package aims to stabilise local finances and broaden welfare coverage, but implementation choices will determine the economic and political trade‑offs.
China's 2026 Growth Playbook: Policy Push, Consumption Pivot and a Tech-Led Transition
China ended 2025 with 5% GDP growth and its economy topping RMB 140 trillion. For 2026 economists expect coordinated fiscal and targeted monetary easing to prioritise domestic demand, with consumption and services leading a structural shift toward technology-driven growth.
Three Briefings, One Signal: Beijing Mobilises Policy Tools to Stabilise China’s Housing Market
On 20 January 2026 Beijing issued a trio of policy signals — income-support planning from the NDRC, a pledge of more expansive fiscal spending from the Finance Ministry, and new urban-renewal measures from the Ministry of Natural Resources — that together amount to a coordinated boost for the real-estate sector. The package signals a strategic pivot from short-term stimulus toward building household purchasing power and accelerating redevelopment as levers for stabilising growth and consumption.
Beijing Layers Fresh Fiscal Lifelines to Spur Consumption and Private Investment in 2026
China has rolled out a six-part fiscal-financial package for 2026 focused on propping up domestic demand by cutting private financing costs, expanding guarantee and risk-sharing schemes, and extending consumer loan subsidies. The measures are paired with commitments to sustain fiscal outlays in priority areas, improve budget efficiency, and accelerate technology and green transitions.
China’s 2026 Fiscal Playbook: Bigger, Better‑Targeted Spending to Shore Up Growth and Jobs
China’s finance ministry has outlined a 2026 fiscal strategy that raises the overall spending envelope while reallocating funds toward consumption, social services and high‑impact projects. The plan marries a larger deficit and bond issuance with zero‑base budgeting, better performance management and reforms to transfer payments and tax preferences to boost domestic demand and sustain growth.
Beijing Draws Up Plan to Lift Household Incomes as Consumption Becomes China’s Growth Bedrock
China’s NDRC is preparing a package of measures to boost urban and rural household incomes and shore up consumption, pairing immediate demand support—such as trade‑in subsidies and job stabilisation—with investment, service‑sector expansion, and reforms to spur private participation. The moves respond to data showing consumption is now a leading driver of growth even as officials warn of a supply‑demand imbalance.
Beijing Extends and Expands Loan Interest Subsidies to Boost Service Consumption Through 2026
China has extended a fiscal loan interest‑subsidy scheme for service businesses through the end of 2026, raising the 2026 per‑borrower subsidy cap to RMB 10 million and widening eligible sectors to include digital, green and retail. The move aims to mobilise bank lending and central fiscal resources to revive consumption while imposing stricter oversight and faster settlement procedures.
Beijing Extends Consumer‑Loan Interest Subsidies Through 2026 to Bolster Domestic Demand
China’s Ministry of Finance has extended a fiscal interest‑subsidy for personal consumer loans through 31 December 2026, with an implementation window from 1 September 2025. The policy aims to lower borrowing costs and stimulate household spending, while authorities will reassess its continuation after evaluating outcomes.
China's Economy Hits 140 Trillion Yuan as Stimulus, High-Tech Industry and Exports Sustain 5% Growth
China’s GDP grew 5.0% in 2025 to 140.19 trillion yuan, powered by stepped-up fiscal stimulus, robust exports and faster expansion in high-tech manufacturing. Analysts expect growth to be around 4.8–5.0% in 2026, with risks centring on the property sector, local-government debt and potential weakening external demand.