外文标题：China’s fiscal deficit to be 2.7% of GDP, widest since 2009
BEIJING: China will pursue an expansionary fiscal policy this year to prevent its economy from stalling, finance minister Lou Jiwei said on Friday as he assured investors that authorities are keeping an eye on heavily-indebted local governments.
Asked how China would manage its rising debt levels as its economy loses steam, Lou said the country has to balance the need to deleverage without pushing the economy over a “cliff”.
To underscore the importance of state spending, he said China’s actual fiscal deficit should be worth 2.7 percent of its 2015 gross domestic product (GDP) after taking into account 112.4 billion yuan ($18 billion) that was allocated to previous budgets but was not yet spent.
That ratio is higher than that of the US, where the Congressional Budget Office, the independent agency that provides economic and budgetary analysis to the legislature, projected in January that the fiscal 2015 deficit would reach 2.6 percent of gross domestic product.
The actual US deficit is far larger, as its economy remains around double the size of China’s.
Suman Mukhopadhyay (suman)
China is facing a fiscal challenge as falling land sales and a struggling manufacturing sector hurt tax revenue at various levels of government. The Chinese leadership has already lowered its annual growth target to 7% for 2015, the lowest level in 24 years. While the Chinese revenues are falling, it is really strange to see that Chinaâ€™s 39 million civil servants and public workers will get a pay raise of at least 60% of their base salaries as part of pension plan overhaul.
b culas (Unknown)
China’s defeciet is financed by internal sources. It is much better planned than the US
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But almost all the US deficit is revenue deficit where as China is making large infrastructure investments out of the deficit. Further all the Chinese deficit will be financed through internal sources whereas US deficit is financed by overseas investors given low rate of saving in that country.
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Suvrat Shah (Unknown)
Terrific opportunity for India to convert China’s woes in to India’s Growth potentials