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Govt plans small cut in budget deficit
(Shenzhen Daily/Agencies)
Updated: 2005-12-08 09:34
The government plans to trim its budget deficit by about 1.7 percent to 295
billion yuan (US$36.5 billion) in 2006 while continuing to wind down
infrastructure spending, the China Securities Journal said yesterday.
The planned cut, if approved, would be much smaller than this year錕斤拷s 6
percent reduction from 2004, which helped bring down the government deficit to
300 billion yuan, or just over 2 percent of gross domestic product.
錕斤拷The Central Government deficit will be reduced by 5 billion yuan next year
from this year錕斤拷s level,錕斤拷 the newspaper said, citing unnamed government
officials.
Chinese leaders have pledged to redirect spending from roads and airports to
social security to encourage consumption under a shift in long-term strategy to
help tilt economic growth from an over-reliance on investment and exports.
The government would cut the size of special bonds to finance infrastructure
projects to 60 billion yuan in 2006 from 80 billion yuan this year, the
newspaper said.
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