By Special Correspondent

China will continue advancing fiscal management reforms in 2026, including expanding zero-based budgeting trials, according to a report submitted to the national legislature.

The report states that authorities will improve the modern fiscal system to enhance the efficiency and transparency of government spending.

Zero-based budgeting trials will continue to be promoted in selected central government departments. Under this approach, expenditure items are reviewed and evaluated from the beginning of each budget cycle rather than relying on previous budget allocations.

The reform aims to optimize the structure of fiscal spending and reduce unnecessary expenditure items while ensuring that funding is directed toward priority areas.

According to the report, authorities will also improve the system governing transfer payments to local governments in order to strengthen fiscal support for key regions and ensure equal access to basic public services.

Efforts will also continue to improve fiscal policy coordination between central and local governments.

The report notes that authorities will strengthen management of government debt and further improve mechanisms to prevent and resolve hidden debt risks.

Measures will also be taken to standardize the management of local government financing and enhance supervision over borrowing activities.

In addition, the government will continue improving budget management and financial oversight mechanisms.

Authorities will strengthen monitoring over the allocation and use of fiscal funds and enhance accountability in the management of public finances.

The report states that reforms will also continue in government procurement and public financial management in order to improve the efficiency of fiscal expenditure.

China will also refine tax policies to better support economic development and ensure stable fiscal revenues.

According to the report, these reforms are intended to strengthen fiscal discipline, improve budget performance and ensure more effective use of public funds.

Credit: INP-WealthPk