Feb
24
PBOC Officials Say China Can Handle Raising Budget Deficit to 4%
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Low levels of government debt can help sustain higher deficits
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Top Chinese officials meet next month to set economic plans
China is able to increase its budget deficit to 4 percent of gross domestic product as the government seeks to cut corporate taxes, central bank officials wrote in an article on the Economic Daily’s website.
Low levels of government debt, “relatively fast” economic growth and abundant state-owned assets give the country more capacity to sell more bonds, according to an article written by People’s Bank of China officials including Sheng Songcheng, head of the statistics department. China could maintain a debt-to-GDP ratio of up to 70 percent at end-2025 if the deficit were raised to 4 percent, the officials said…
PBOC Officials Say China Can Handle Raising Budget Deficit to 4%
