Fiscal policy expected to help fend off headwinds

An expanding gap between the Chinese government's income and spending will add deficit pressure this year, when fiscal policy will be the front line of defense against mounting macroeconomic headwinds, experts said.

The government's total spending exceeded 22 trillion yuan ($3.2 trillion) in 2018, a record high and 3.75 trillion yuan greater than its income. Expenditures, however, may keep rising this year, Ministry of Finance officials said at a news conference on Wednesday.

The budgetary fiscal deficit, which could increase to 2.8 percent of GDP this year, is awaiting review and approval by the country's top legislature in March, according to a ministry official who was not authorized to announce the figure. The ratio was set at 2.6 percent in 2018.