China’s Deficit-to-GDP 3% Ratio In Safe Range
China has set its Deficit-to-GDP ratio at 3%, in a safe range and helpful to overcome deflation, an expert said Wednesday.
The Deficit-to-GDP ratio can help boost restructuring, tackle deep conflicts, and maintain social stability, said Yao Jingyuan, a researcher with the Councilor’s Office of the State Council.
Meanwhile, the rise in deficit can help cut taxes for enterprises, deal with “Zombie Companies” and protect the interests of employees, he said.
China plans to raise its Deficit-to-GDP ratio to 3% this year from 2.3% in Y 2015, said a government work report delivered to China’s top legislature Saturday, offering the government more to spend.
The government deficit for Y 2016 is projected to be RMB 2.18-T (US$335-B), a rise of RMB 560-B over last year.
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Paul Ebeling
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