Lan Fo'an: 100 billion yuan in fiscal and financial coordination special funds to support benefiting trillion-level credit demand

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** Caixin News ** Continuing to implement more proactive fiscal policies in 2026, a major feature is strengthening policy coordination, with the first-ever launch of a 100 billion yuan fiscal and financial coordination package to promote domestic demand. On March 6, Minister of Finance Lan Fuan stated that this package combines tools such as loan interest subsidies, financing guarantees, and risk compensation, along with a 250 billion yuan consumer goods replacement policy, making it more vigorous than last year. Preliminary estimates suggest that the 100 billion yuan in fiscal funds can support trillions of yuan in credit, achieving a “small push to move a mountain” effect.

Lan Fuan said at the economic-themed press conference that China’s overall economy is shifting towards new and better development, but the contradiction of “strong supply but weak demand” remains prominent. Consumer vitality is insufficient, and private investment growth is relatively weak. To address this issue, the central government has specifically allocated 100 billion yuan in 2026 to launch a fiscal and financial coordination package to promote domestic demand.

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