Business / Economy

China's deficit increase boon for growth, reform: official

(Xinhua) Updated: 2016-03-07 10:34

BEIJING - China's increase of its deficit-to-GDP ratio will help prevent economic growth from falling rapidly and facilitate structural reform, a senior official said Monday.

Given problems amid the economic new normal, the country's new budget will support the economy to realize medium-high speed growth, Minister of Finance Lou Jiwei said at a press conference on the sidelines of the annual parliamentary session.

China plans to raise deficit-to-GDP ratio to 3 percent this year from 2.3 percent in 2015, said a government work report delivered to China's top legislators Saturday, offering the government more to spend.

The government will ensure major spending in people's wellbeing and public services, and strengthen support for supply-side structural reform, the minister said.

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