China Budget Deficit Shrinks Despite Need For Economic Boost
- Broad fiscal deficit was 3.3 trillion yuan in Jan.-July
- Total revenue rose in the period, while spending declined
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China’s budget deficit shrank by more than a third so far this year, a sign of Beijing’s cautious fiscal policy despite the economy’s slowdown and a worsening housing slump.
The broadest measure of the fiscal gap — the so-called augmented deficit — was 3.3 trillion yuan ($449 billion) in the first seven months of this year, down 37% from the same period in 2022, according to Bloomberg calculations based on data released by the Ministry of Finance on Monday. Total revenue rose 6%, while spending was down 4.8% in the period.