China will draft its fiscal policy on a three-year basis, instead of the current one year, to better manage its fiscal budget and improve the efficiency of resource allocation, the State Council said in a recent statement.

Adopting medium-term fiscal planning will help address the problems of "fragmented and unsustainable" fiscal spending, Chinese media reports quoted experts as saying. Medium-term planning would also better suit items that require continuous fiscal spending and cannot be planned on a yearly basis.

The Ministry of Finance will also establish a budget evaluation system and intensify its efforts to reallocate unspent money to better manage existing funds.

The country's fiscal budget is currently drafted on an annual basis, often resulting in shortsighted and unsustainable fiscal policies.