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Tax & Spend

China Central Government to Borrow More: 2023 Budget Details

  • New sovereign bond issuance expected to rise nearly 20%
  • Fiscal policy to be more effective than 2022: Societe Generale
The Great Hall of the People during the opening of the first session of the 14th National People's Congress at The Great Hall of People in Beijing on March 5.

The Great Hall of the People during the opening of the first session of the 14th National People's Congress at The Great Hall of People in Beijing on March 5.

Photographer: Lintao Zhang/Getty Images 

By
Bloomberg News
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China’s central government is planning to increase borrowing by almost a fifth this year to finance a slightly bigger budget deficit, helping to reduce pressure on debt-laden local governments. 

Beijing plans to issue 3.16 trillion yuan ($458 billion) in general sovereign bonds in 2023, 510 billion yuan more than last year, the Ministry of Finance said in its budget report submitted to the National People’s Congress, the nation’s parliament. The quota for general bonds to be sold by local governments was kept unchanged from last year at 720 billion yuan.