China’s fiscal policy for 2025 will see significant changes, with an increased fiscal deficit and expanded use of special bonds to stimulate the economy, officials announced at a series of press briefings Friday on the country’s high-quality economic development.

Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance, revealed that within the quota of new special bonds to be issued in 2025, local governments would be allowed to make arrangements for land use as needed.

These arrangements will include two special bond projects: The reservation of land and the purchase of existing commercial housing to be repurposed as affordable housing. Lin said the policy’s effects will gradually unfold throughout 2025.

Meanwhile, China’s fiscal deficit will rise significantly in 2025, Liao Min, vice minister of finance, said at the same press conference.