Source: CCTV.com

03-05-2009 14:16

Special Report:   2009 NPC & CPPCC Sessions

China has announced a fiscal deficit budget of 950 billion yuan for 2009. That's a six-decade, record high. The surging deficit is part of China's proactive fiscal policy in response to a slowing economy, as well as decreasing jobs amid the global economic downturn.

China has announced a fiscal deficit budget of 950 billion  yuan for 2009.

 

Premier Wen Jiabao made the remarks while delivering his Government Work Report at the annual NPC session on Thursday. He also noted the total deficit accounts for less than 3 percent of the country's GDP.

Wen Jiabao said this year's central government deficit has been set at 750 billion yuan. That's 570 billion yuan more than last year. In addition, the State Council will allow local governments to issue 200 billion yuan worth of government bonds. He noted the cumulative balance of outstanding government bonds to GDP -- about 20 percent -- is within a safe, acceptable range.

Premier Wen also said the country will adopt a moderately easy monetary policy. He also notes the government will increase its money supply by about 17 percent. And he projects the government will grant over five trillion yuan in new loans that's a record-high.

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Editor:Xiong Qu