Source: CCTV.com

03-06-2009 18:15

Special Report:   2009 NPC & CPPCC Sessions

The Chinese government has announced a record 950-billion-yuan fiscal deficit for this year aimed at spurring economic growth.

Many CPPCC members say the massive deficit is necessary and will not threaten China's economic safety.

Many CPPCC members say the record deficit budget is a necessary and wise decision.(CCTV.com)
Many CPPCC members say the record deficit budget is a
necessary and wise decision.(CCTV.com)

"This is the Chinese government's Draft Report on Central and Local Budgets for 2009. It is one of the main topics to be discussed by members at Friday's meeting. One figure that stands out is this year's fiscal deficit budget, set to be 950 billion yuan. That's the highest ever in China and 9 times the deficit amount in 2008."

Many CPPCC members say the record deficit budget is a necessary and wise decision.

Sun Wenjie, CPPCC Member, said, "It's completely necessary. This financial crisis is unprecedented in a century and its impact has not yet bottomed out. So I think the central government's decision demonstrates its vision. We cannot expect to conquer this crisis without this type of special measure."

Wu Yan, CPPCC Member, said, "The surging deficit is part of China's proactive fiscal policy and should not be a cause for concern. It is a good sign, and shows our economic strength and the government's confidence in the prospects of the economy."

But many members concede China will have to cope with a tight fiscal status over the next few years. Some are submitting their proposals on easing the government's fiscal pressure.

Wang Zhang, CPPCC Member, said, "I suggest the government should issue US-dollar-denominated treasury bonds abroad, using our massive foreign exchange reserve as a collateral. The government can then use the money obtained from the bond issuance to boost the domestic economy."

Working at the predicted 8 percent GDP growth this year, the 950-billion-yuan deficit budget accounts for less than 3 percent of China's GDP. That keeps it within accepted deficit levels of countries around the world. Some CPPCC members say the government's fiscal revenue increases in previous years has given the government room to come up with even more aggressive fiscal measures, when necessary, to combat the crisis.

 

Editor:Zhang Pengfei