Economics
China to Propose Wider 2019 Fiscal Deficit Amid Slowdown
- Target of 2.8% is a smaller expansion than many forecast
- Off-balance sheet lending could still be used to aid growth
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China’s Finance Ministry is set to propose a small increase in the targeted budget deficit for this year as officials seek to balance support for the economy with the need to keep control of debt levels.
The ministry agreed the proposed deficit target of 2.8 percent of gross domestic product at its annual work conference in December, two people familiar with the matter said. The figure, which compares with 2018’s target of 2.6 percent, will be presented for approval at the National People’s Congress, China’s legislature, in March. The final number could still change.