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China plans 950b yuan budget deficit in '09

By Zheng Lifei (chinadaily.com.cn)
Updated: 2009-03-05 10:05

China announced Thursday a fiscal deficit budget of 950 billion yuan ($139 billion) for 2009, a record high in six decades, said Chinese Premier Wen Jiabao at the opening of the parliament's annual session.

The total deficit accounts for less than 3 percent of China's gross domestic product (GDP).

"The ratio of the cumulative balance of outstanding government bonds to GDP, which is around 20 percent, is within the acceptable range of what our overall national strength can bear and is therefore safe," Wen told the country's legislators.

China set this year's central government deficit at 750 billion yuan, 570 billion yuan more than last year, he said.

In addition, the State Council, or Cabinet, will allow local governments to issue 200 billion yuan worth of government bonds through the Ministry of Finance, which will go into provincial budgets, said Wen.
 
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