China plans to run a budget deficit of 1.35 trillion yuan in 2014, the Ministry of Finance said in Beijing today, amounting to 2.1 percent of gross domestic product.
Fiscal spending is targeted to rise 9.5 percent to 15.3 trillion yuan and revenue will grow 8 percent to 13.953 trillion yuan, excluding funds to be transferred from the stabilization fund, the ministry said in a budget report presented to the National People’s Congress.
Including transfers from the stabilization fund, fiscal revenue this year will be 14.053 trillion yuan. Total fiscal spending will be 15.4 trillion yuan.
The finance ministry will this year sell 400 billion yuan of bonds on behalf of local governments, according to today’s report.
China’s ruling Communist Party said late last year it would implement a “proactive” fiscal policy in 2014, maintaining the stance for a sixth year.
— With assistance by Xiaoqing Pi, and Li Liu