China To Keep Deficit, Debt Levels High In 2023 - Yicai

China may maintain relatively large deficits and debt next year to cope with weakening external demand and insufficient domestic demand, as the Politburo meeting this week called for a step up in proactive fiscal policy for 2023, Yicai.com reported. Analysts predict the budget deficit-to-GDP ratio could be raised to 3% or slightly above from 2.8% in 2022, the newspaper said. Fiscal pressure remains given less surplus funds are available, though setting the deficit rate at 3.1% will unleash over CNY4 trillion in funds, the newspaper said citing Gao Ruidong, chief macro economist of Everbright Securities. Gao expects the scale of new local government special bonds to be around CNY4 trillion, and sees a growing urgency for the issuance of special Treasury bonds, the newspaper said.