By Special Correspondent

China plans government spending of 30.01 trillion yuan in 2026, with a projected fiscal deficit of 5.89 trillion yuan, according to the draft central and local budgets submitted to the national legislature.

The report states that expenditure in the national general public budget will reach 30.01 trillion yuan in 2026, representing an increase of 4.4% over the previous year.

The deficit-to-GDP ratio has been set at around 4%, while the total government deficit is projected at 5.89 trillion yuan, an increase of 230 billion yuan compared with the figure projected at the beginning of the previous year.

The planned deficit will consist of a central government deficit of 5.09 trillion yuan and a local government deficit of 800 billion yuan. The increase in the deficit will be listed under central government accounts.

Budgetary expenditure of government-managed funds nationwide is projected to rise by 5.1% to 11.8663 trillion yuan.

Revenue in the central general public budget is projected to reach 9.567 trillion yuan in 2026, representing an increase of 1.8% over the actual figure recorded in 2025.

With the addition of 100 billion yuan from the Central Budget Stabilization Fund and 250 billion yuan from the budget of central government state capital operations, total central revenue is expected to reach 9.917 trillion yuan.

Expenditure in the central general public budget is projected to increase by 3.5% to 15.007 trillion yuan.

Central government expenditures are expected to rise by 5.5% to 4.542 trillion yuan. According to the report, spending will prioritize areas including diplomatic affairs, national defense, science and technology, education, national reserves and debt interest payments.

Among the major expenditure items, spending on diplomatic endeavors is projected at 70.975 billion yuan, while national defense spending is expected to reach 1.909561 trillion yuan. Public security expenditure is projected at 258.269 billion yuan.

Education spending in the central general public budget is projected to reach 192.476 billion yuan, while spending on science and technology is expected to total 426.42 billion yuan.

The report also states that 110.684 billion yuan will be allocated for stockpiling grain, edible oils and other materials, while debt interest payments are projected at 873.99 billion yuan.

Transfer payments from the central government to local governments are projected at 10.415 trillion yuan in 2026, representing an increase of 2.2%.

Of this amount, payments aimed at ensuring equal access to basic public services will total 2.834 trillion yuan, while 489.5 billion yuan will be allocated as rewards and subsidies under the mechanism for ensuring basic funding for county-level governments.

The report states that the national general public budget revenue, combining both central and local government budgets, is projected to increase by 2.2% to 22.07 trillion yuan in 2026.

Revenue will include tax receipts of 18.152 trillion yuan and non-tax revenue of 3.918 trillion yuan. With the addition of funds from other sources and carryover balances totaling 2.05 trillion yuan, total revenue is expected to reach 24.12 trillion yuan.

Credit: INP-WealthPk