China ramps up fiscal push to meet growth target

China allocated ​550 billion yuan ($82 billion) in ‌unused ​government debt quotas on Friday to support local government finances and expand infrastructure investment, as it boosts ‌support for an economy battling weak consumption and investment.

The step followed a run of soft economic readings that piled pressure on efforts to attain this ‌year's growth target of 4.5% to 5%. Momentum has faltered after the first ‌quarter as tepid domestic demand and a prolonged property downturn offset a boom in high-tech sectors and goods exports.

Of Friday's debt quota, 300 billion yuan is earmarked for supporting ⁠the ​daily operations of ⁠county-level and district-level governments, the finance ministry said in a statement. The rest of the proceeds ⁠will fund infrastructure projects, especially those being built, and in economically stronger regions.

China's State ​Council, or cabinet, pledged last month to step up counter-cyclical policy support ⁠to tackle rising economic strain and achieve this year's economic and social development targets. Policymakers had ⁠similarly ​tapped unused government debt quotas as a year-end fiscal push in the past two years, but this year's figure exceeds those of ⁠2024 and 2025.

In another statement, the finance ministry vowed to "vigorously and effectively" ⁠implement a more ⁠proactive fiscal policy and support expansion of domestic demand. ($1=6.6923 Chinese yuan renminbi)