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China budgets 1.05t yuan of fiscal deficit for 2010


(Xinhua)
Updated: 2010-03-05 11:06
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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.

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The government vowed to keep the debt at "appropriate" level. The total deficit consists of 850 billion yuan in central government deficit and 200 billion yuan in local government bonds, which will be included in local government budgets, reads the report, which was distributed to the media before the opening of the Third Session of the 11th National People' s Congress (NPC).

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.

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