An aerial view of the construction site of the Wuxi-Yixing Expressway expansion project, undertaken by State builder China Railway Construction Corp's 24th bureau. CHINA DAILY
The decision to maintain the 2025 GDP growth target at "around 5 percent", as revealed in the Government Work Report released during the recently concluded two sessions, alongside an enlarged deficit-to-GDP ratio, were seen by experts as a robust commitment by the government to leverage fiscal instruments in sustaining a steady growth trajectory despite challenges.
According to the report, the nation "will appropriately enhance the intensity" of its fiscal policy and the deficit-to-GDP ratio will be set at about 4 percent, a record high. Also, the total scale of government debt will reach 11.86 trillion yuan ($1.64 trillion), an increase of 2.9 trillion yuan from the previous year, indicating that the government has significantly stepped up its efforts to expand fiscal spending and aims to stimulate economic growth, said a GF Securities report.
With an increase of 1 percentage point in the deficit-to-GDP from last year, an expected ultra-long-term special treasury bond issuance of 1.3 trillion yuan — 300 billion yuan more than last year — and 4.4 trillion yuan in special-purpose bonds for local governments, it has been clear that the government will take resolute moves to secure its growth momentum, reflecting an increasing focus of the nation on clearing risks behind local government debt, said Huafu Securities.
"According to the Government Work Report, a major part of funds raised via local government bonds will be guided into rural infrastructure and public services projects, where the role of investment is also vital. To achieve a GDP growth target of around 5 percent this year, China needs a stronger driving force from investment," said Long Chaocan, an investment consultant with China Galaxy Securities.
"Government investment flowing into sectors key to the nation's development, such as infrastructure projects both new and traditional, will encourage increasing participation of the nongovernmental sector, shore up sentiment among investors and boost overall investment, enhancing its role in driving the nation's economy."
Citing highlights regarding coordinated development among cities in the Government Work Report, Long said transportation projects connecting more cities with regional development hubs are expected to see faster progress this year, given ample capital supply supported by fiscal instruments.
State builders are ramping up efforts to upgrade infrastructure projects nationwide while ensuring stable progress on ongoing major infrastructure projects.
For example, China Railway 24th Bureau Group Co Ltd, a State-owned contractor under China Railway Construction Corp, successfully removed on Wednesday a 110-meter, 2,352.6-metric-ton concrete bridge off the existing Wuxi-Yixing Expressway over the Xinyi-Changxing Railway using self-propelled modular transporters.
The removal marks a milestone in the upgrade both of the expressway and the railway, as many road sections of the existing expressway are hindering the electrification of the railway, CR24G said.
Spanning 36 kilometers in its first phase, the Wuxi-Yixing Expressway expansion will enhance connectivity between cities in Jiangsu province — Wuxi, Changzhou and Yixing — upon its completion, aligning with the province's development goal to further integrate into the Yangtze River Delta's economic hub, the State builder said.
