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China May Raise More Deficit While Keeping Ratio at 3.2%: Journal

MNI (Singapore)

China may expand budget deficit in 2022 to boost spending, while keeping deficit-to-GDP ratio similar to or lower than last year's target, set at 3.2% in March 2021, the China Securities Journal reported citing analysts. This year's deficit may reach CNY3.93 trillion, CNY360 billion more than in 2021, the newspaper said citing Zhong Zhengsheng, the chief economist at Ping An Securities. China may allow CNY3.65 trillion local government special bonds to be issued, matching last year's level, and will mainly spend them on new-energy and technology infrastructure, while giving more tax and fee cuts to manufacturing and small businesses, the newspaper said.

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