China has committed to sustaining its spending levels this year amid revenue challenges, highlighting the dilemma of bolstering the slowing economy without intensifying local debt concerns. Last year’s deficit neared an all-time high at 8.84 tln yuan (USD 1.2 tln). This fiscal strategy comes as China faces a real estate downturn, subdued demand, and deflationary pressures, with top leaders vowing to reinforce fiscal policies.