minsta

Will the Chinese Parliament give the green light to a fiscal recovery plan?

Pabio November 3, 2024

The Standing Committee of the National People’s Congress (NPC), China’s top legislative body, will meet on Monday in Beijing to discuss a wide range of issues. A large fiscal stimulus, recommended by several eminent economists and eagerly awaited by investors, will likely be part of this.

While the markets speculate on potential size of a budget package – with estimates ranging from 2 trillion yuan ($280.66 billion) to 10 trillion yuan – we’ve compiled some basic facts about the upcoming session, how they would approve such a stimulus and when the public is likely to become aware of it. .

What is the connection between the legislature and the stimulus measures?

China’s Ministry of Finance under the State Council – the country’s cabinet – usually submits the fiscal budget to the NPC for approval during the period. annual legislative session in Marcha necessary step before implementation.

The NPC Standing Committee, which exercises legislative power outside the plenary session, is empowered to approve any adjustments to government budgets during the financial year – including changes to the annual budget deficit ratio, quota special treasury bills and the local government ceiling. debt levels.

It traditionally meets every two months, often at the end of even months. There have been exceptions to this informal custom; the next conclave will be held in November, and a previous meeting this year was held in mid-September.

The agenda for the November meeting did not include bills related to the Ministry of Finance or budget plans. This does not mean that it cannot happen: on several occasions, budgetary adjustments have been announced after the fact.