News Update
CHINA NPC: Finance Ministry: 2010 National Budget Deficit CNY1.05 Tln
CHINA NPC: Finance Ministry: 2010 National Budget Deficit CNY1.05 Tln
BEIJING (Dow Jones)--China''s Finance Ministry said Friday it is projecting a national budget deficit of CNY1.05 trillion this year, equivalent to 2.8% of gross domestic product.
The ministry''s budget report, issued during the National People''s Congress, the annual legislative session, stated that China will continue with its "active" fiscal policy in 2010.
China plans to receive revenue of CNY7.393 trillion this year, up 8% from 2009, and spend CNY8.453 trillion, up 11.4%, the ministry said.
"Although China''s economy is recovering, the foundations are not solid yet. We need to maintain continuity and stability of fiscal policy," the Ministry of Finance said in its annual budget report.
"The fiscal deficit in 2010 still needs to be of an appropriate size. At the same time, in order to promote the sustainable development of public finances, actively prevent fiscal risk, and leave some leeway to gradually reduce the deficit in future years, we must keep the deficit under 3% of GDP," it added.