China budgets 1.05t yuan of fiscal deficit for 2010
Updated: 2010-03-05 11:06
BEIJING - China budgets 1.05 trillion yuan ($154.4 billion) of fiscal deficit this year to support economic growth as government revenue will fall significantly short of expenditures, says a government work report to be delivered by Premier Wen Jiabao at the parliament's annual session Friday.
The government will continue to implement the policy of structural tax reductions to expand domestic demand and promote economic restructuring.
It will also keep running the package plan for dealing with the global financial crisis, and increase spending to complete work on projects now under construction, improve people's well-being and maintain stability.
According to calculation of the Ministry of Finance, the planned budget will take up about 2.8 percent of the GDP.
China's fiscal deficit hit 950 billion yuan last year, a record high in six years, but still less than 3 percent of GDP.