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MNI:China To Raise 2025 Deficit Ratio, More Special Bonds Eyed

Beijing will likely raise the budget deficit target in 2025, according to advisors.

MNI (BEIJING) - China is likely to raise its budget deficit target for 2025 to as high as 3.5% of gross domestic product, and to increase issuance of special government bonds to provide additional stimulus for the economy, advisors told MNI, predicting authorities would announce further measures during the Central Economic Work Conference in December.

The deficit-to-GDP ratio could be raised to about 3.5% next year from 2024s 3%,” said Zhang Yiqun, director at a fiscal studies institute affiliated with Jilin provinces finance department, after Finance Minister Lan Foan told reporters last Friday that more proactive fiscal policies including utilising the deficit space available and expanding issuance of special bonds would be pursued next year to meet economic goals.

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MNI (BEIJING) - China is likely to raise its budget deficit target for 2025 to as high as 3.5% of gross domestic product, and to increase issuance of special government bonds to provide additional stimulus for the economy, advisors told MNI, predicting authorities would announce further measures during the Central Economic Work Conference in December.

The deficit-to-GDP ratio could be raised to about 3.5% next year from 2024s 3%,” said Zhang Yiqun, director at a fiscal studies institute affiliated with Jilin provinces finance department, after Finance Minister Lan Foan told reporters last Friday that more proactive fiscal policies including utilising the deficit space available and expanding issuance of special bonds would be pursued next year to meet economic goals.

Keep reading...Show less