- The government has agreed to increase the central budget for infrastructure spending. However, aside from the IKN project, central government expenditure on other infrastructure programs is still expected to decline substantially in 2025.
- Recent revisions to the central government’s infrastructure budget may raise speculation that the 2025 budget deficit could be larger than previously announced.
- Although effective in increasing the share of capital expenditure budgets at the regional level, the government’s strategy to delegate infrastructure spending to regional governments may not substantially improve the contribution of fixed-asset investments to GDP growth in the upcoming period.
