MNI POLICY: China Should Be Cautious Raising Deficit: Advisor

By Archie Zhang and Wanxia Lin

     BEIJING (MNI) - China should be "particularly cautious" when deciding on

increasing fiscal deficit, as the rising debt level may lead to either regional

or systemic financial crisis, Gao Peiyong, Vice President of the Chinese Academy

of Social Sciences, said on Saturday.

     "The increase should be restrained" even if necessary, said Gao at the

China Capital Market Forum in Beijing.

     The government will further cut its general expenditure to support

expansionary fiscal policy and the policies will have a stronger impact on the

economy than in 2019, Gao said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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