Chi's budget deficit in 2016 to reach three per cent GDP

Beijing, Jan 31: Chi’s proactive fiscal policy will continue in 2016 and its general public budget deficit will expand, the Chi Intertiol Capital Corp. (CICC) said. CICC alysts expect the deficit this year to reach 2.2 trillion yuan ($336 billion), or three percent of the country’s gross domestic product (GDP), Xinhua reported. The note came after a tiol fiscal work conference statement said last month that Chi would increase its budget deficit in 2016, gradually raise its fiscal deficit ratio. In an effort to shore up growth, Chi raised its deficit-to-GDP ratio to 2.3 percent for 2015 from 2.1 percent in 2014. A three percent deficit ratio is normally considered a red line not to be crossed, but opinions favour a higher ratio as it ebles the government to cut taxes, encouraging more production. (IANS)