China Plans Debt-Interest Spending Equal to 19.2% of Central Outlays

China plans to spend RMB 8,739.9 billion on debt interest in 2026, equal to about 19.2% of central government direct spending as Beijing expands fiscal support for slower growth.

The planned interest bill is up 6.7% from 2025 and compares with RMB 45,420 billion in central government direct spending. The share is higher than the roughly 14% projected for U.S. federal outlays, although the measures are not identical: China’s figure covers budgeted central debt-interest spending, while the U.S. figure uses net interest costs after interest income is deducted.

A comparison of budget figures shows China’s debt-interest spending rose 341% from 2013 to 2025, while total expenditure increased 102%. Interest payments accounted for about 19.0% of central direct spending in 2025, based on RMB 8,193.61 billion in interest costs and RMB 43,034.24 billion in direct spending.

U.S. net interest costs are projected to rise from $970 billion in fiscal 2025 to more than $1 trillion in fiscal 2026, an increase of $69 billion, or 7%. Interest is projected to account for about 14% of federal outlays.

China’s 2026 national general-public-budget expenditure is set at RMB 300,100 billion, up 4.4% from the previous year. The planned national fiscal deficit is RMB 58,900 billion, or about 4% of gross domestic product.

Beijing has set a 2026 economic-growth target of 4.5% to 5%. Premier Li Qiang said the government would pursue “GDP growth of 4.5-5 percent, while striving for better in practice.”

China’s official general-government debt is projected to reach 75.1% of GDP in 2026. A broader measure that includes local-government financing vehicles and other liabilities excluded from the official figure is projected to reach 135.3% of GDP.

The 19.2% figure applies only to central government direct spending, not total national government spending. The difference in budget definitions also limits direct comparison with the United States.