Key Focus: The 2024 Central Budget Final Accounts Report Is Released!

Recently, the State Council released the “ The “2024 Central Budget Final Accounts Report” comprehensively summarizes China’s fiscal performance during the pivotal year of the 14th Five-Year Plan. Supported by data, the report highlights the comprehensive achievements of the central government’s fiscal policies in areas such as stabilizing growth, promoting reform, adjusting economic structure, and improving people’s livelihoods, providing an authoritative reference for all sectors of society to better understand the country’s fiscal policies. Below, we present a summary of the key contents of the 2024 Central Budget Final Accounts from three perspectives: budget execution, policy effectiveness, and risk prevention and control.

I. Budget Execution: Overall balance of revenues and expenditures, with enhanced capacity for coordinated management of fiscal resources.

According to the 2024 central government fiscal revenue and expenditure final accounts, central general public budget revenue totaled 10,046.206 billion yuan, achieving 98.1% of the budget and increasing by 0.9% over 2023. Total expenditures reached 14,105.59 billion yuan, fulfilling 97.9% of the budget. The central government’s fiscal deficit amounted to 3,340 billion yuan, remaining in line with the budgeted level. These results reflect the stability and flexibility of fiscal policy:

Revenue Side: Optimization of the Tax and Non-Tax Revenue Structure

Tax revenue 914.1966 billion yuan, down 4.6% year-on-year, mainly affected by factors such as industrial producer prices and the base for consumption tax;

Non-tax revenue 904.24 billion yuan, a substantial increase of 142.3%, primarily driven by special revenues turned over by central government agencies, highlighting the enhanced capacity for coordinated management of fiscal resources.

Expenditure Side: Increased Support for Key Areas

Central-level expenditure 4,072.018 billion yuan, representing 98.1% of the budgeted amount, with key support directed toward areas such as national defense (1,665.2 billion yuan), education (166.071 billion yuan), and science and technology (361.909 billion yuan);

Local transfer payments 10,033.572 billion yuan, representing 98.3% of the budgeted amount. Among this total, transfers for shared fiscal responsibilities amounted to 3,750.337 billion yuan, and special-purpose transfers totaled 817.428 billion yuan, helping local governments firmly safeguard the “three guarantees” bottom line.

In addition, the central government has strengthened its ability to conduct cross-cycle fiscal adjustments by drawing upon resources from the Budget Stabilization and Adjustment Fund and carrying over funds. By year-end, the balance of the Central Budget Stabilization and Adjustment Fund reached... 282.701 billion yuan, leaving policy room to address future uncertainties.

II. Policy Outcomes: The proactive fiscal policy has been precisely targeted, driving the economy to rebound and improve.

In 2024, the fiscal authorities adhered to the policy stance of "strengthening efforts and improving efficiency," introducing a series of incremental policies focused on three key areas: debt resolution, investment, and people's livelihoods, and achieved remarkable results.

1. Tackling Debt: Making Implicit Debt Explicit and Systematically Resolving Local Government Debt Risks

New addition The 6 trillion yuan local government debt ceiling, intended for replacing existing implicit debts, saw 2 trillion yuan already issued in 2024. As a result, the total amount of implicit debt that needs to be resolved by the end of 2028 has been significantly reduced—from the original planned 8.3 trillion yuan to 2.3 trillion yuan, with an average interest rate decline of over 2.5 percentage points.

Issue The 1 trillion-yuan ultra-long-term special government bonds are specifically allocated to support the “Two Major” areas (major strategies and major projects) and the “Two New” areas (new-quality productivity and ultra-long-term funding needs), thereby driving the construction of over 1,400 major projects. Throughout the year, central budgetary investment reached 700 billion yuan, with a focus on key sectors such as urban renewal, transportation and energy, and food security.

2. Benefit Businesses and the People: Policy dividends reach the grassroots level directly, boosting market vitality.

A comprehensive package of real estate support policies—including lowering the lower limit of the provisional land value-added tax rate, adjusting preferential treatment for deed taxes, and promoting special bonds to support the construction of affordable housing—will help stabilize and reverse the downward trend in the market.

Investment in education and people's livelihoods reaches a record high: National scholarship and grant standards have been raised and coverage expanded; student loan amounts have been increased, and interest rates have been reduced, benefiting— 34 million student visits; before National Day, a one-time living allowance was distributed to 11 million people facing difficulties, ensuring that the basic livelihood needs of the people are firmly met.

3. Anticipatory Management: Strengthen Market Confidence and Boost Intrinsic Economic Momentum

Establish a fiscal expectation management mechanism, proactively communicate externally, and stabilize market confidence.

By adjusting accounting under the accrual basis (such as the disbursement of wage and social security funds, and the balance of centralized treasury payments), ensure policy implementation. “Fully mobilized,” throughout the year, central government fiscal funds transferred into the general public budget reached 90 billion yuan, achieving a balance of “revenue covering expenditure.”

III. Risk Prevention and Control: Refining debt management and continuously enhancing fiscal sustainability.

While maintaining steady growth, the fiscal authorities place great emphasis on risk prevention and control, taking multiple measures to strengthen the foundation for fiscal sustainability:

The scale of national debt and local government debt is strictly controllable.

Year-end balance of central government bonds 34,572.362 billion yuan, within the limit of 35,200.835 billion yuan approved by the National People's Congress;

Local government debt balance 47,540.125 billion yuan—this figure has not exceeded the 52,787.43 billion yuan limit. By implementing categorized management of special-purpose debt and general debt, we can effectively prevent systemic risks.

Three Public Funds Dual Optimization for Budget Efficiency

In 2024, the central government’s expenditure on “Three Publics” expenses totaled 4.054 billion yuan, an increase of 182 million yuan compared to 2023. However, overall, these expenditures remain below pre-pandemic levels (820 million yuan less than in 2019).

During the implementation of central budget investments, the structure will be flexibly adjusted to— Central government expenditures at the central level, originally totaling 163.5 billion yuan, have been reallocated as transfer payments to local governments, amounting to 536.5 billion yuan, thereby enhancing the efficiency of fund utilization.

IV. Future Outlook: How Can Fiscal Policy Continue to Deliver?

In 2025, fiscal policy will continue to be guided by the overarching principle of "seeking progress while maintaining stability," with a focus on deepening implementation in the following areas:

Debt-reduction policies will be implemented gradually over the years: Remaining The 4 trillion yuan replacement quota will be implemented as planned, further easing the pressure of local government debt.

Rolling issuance of ultra-long-term special government bonds: Expected In 2025, 100 billion yuan will be transferred into the Central Budget Stabilization Adjustment Fund to support the development of strategic emerging industries and new infrastructure construction.

Precise measures for safeguarding people's livelihoods: Focus on addressing shortcomings in areas such as education, healthcare, and elderly care, improve fiscal subsidy and transfer payment mechanisms, and promote common prosperity.

Conclusion

The 2024 Central Budget Report not only highlights the resilience of fiscal policy in a complex environment but also lays a solid foundation for high-quality economic development in the future. Through a three-pronged policy mix—“expanding revenue sources and curbing expenditures,” “precise and targeted support,” and “risk prevention and control”—China’s fiscal policy is injecting strong momentum into the economy’s transformation and upgrading in a more sustainable manner. Going forward, striking the right balance between short-term efforts to stabilize growth and medium- to long-term risk prevention will remain a key challenge for optimizing fiscal policy.