Settling for a moderate growth target of 7.5 per cent for the second successive year due to the global economic slowdown, the Chinese government has projected a fiscal deficit of $191 billion for this year, $64.5 billion more than last year. Gross domestic product (GDP) grew by around 7.8 per cent last year, amounting to 51.9322 trillion yuan, 0.3 percentage points higher than the targeted figure, stated the work report of the Chinese government submitted to the National People’s Congress (NPC) on Tuesday.
Last year, too, the government had set a moderate target of 7.5 per cent despite the previous year’s 9.3 per cent GDP in view fo a steady fall in exports, the mainstay of China’s economic growth due to the global economic slowdown. The key targets for this year include 7.5 per cent GDP growth, 3.5 per cent inflation and creation of more than 9 million new city jobs to keep urban unemployment under 4.6 per cent.
The deficit consists of a central government deficit of 850 billion yuan and 350 billion yuan in bonds to be issued on behalf of local governments.
Last year, too, the government had set a moderate target of 7.5 per cent despite the previous year’s 9.3 per cent GDP in view fo a steady fall in exports, the mainstay of China’s economic growth due to the global economic slowdown. The key targets for this year include 7.5 per cent GDP growth, 3.5 per cent inflation and creation of more than 9 million new city jobs to keep urban unemployment under 4.6 per cent.
The deficit consists of a central government deficit of 850 billion yuan and 350 billion yuan in bonds to be issued on behalf of local governments.