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China Budget Deficit Nears Record $1 Trillion Amid Slowdown

  • Deficit for first nine months is almost three times last year
  • Slumping land sales, tax breaks cut into government revenue
Updated on

China’s broad fiscal deficit hit an all-time high in the first nine months of the year as Covid outbreaks and a housing market slump continue to erode government income.

The deficit in the budgets for all levels of government was 7.16 trillion yuan ($980 billion), according to Bloomberg calculations based on data released by the Ministry of Finance on Tuesday. That is a record for any comparable period and is almost three times the 2.6 trillion yuan shortfall in January-September last year.