China’s bigger budget deficit is mainly to finance tax cuts
BEIJING – China’s wider fiscal deficit budgeted for 2016 will be mainly used to finance tax cuts, a senior official of China’s cabinet research unit said on Wednesday.
The comments from Huang Shouhong, deputy director of the State Council Research Office, came from a briefing in Beijing.
China budgeted a 2016 deficit of 3 percent of gross domestic product (GDP), the Ministry of Finance said on March 5 in its work plan unveiled at the annual meeting of parliament.
The fiscal deficit to GDP ratio was budgeted at 2.3 percent in 2015. -Reuters