China’s higher deficit-to-GDP ratio target for 2019 is proactive and realistic, Finance Minister Liu Kun told the media during a press conference on the sidelines of the annual session of the National People’s Congress, the country’s top legislative body.
China has lifted its fiscal deficit target to 2.8 percent of GDP for 2019, an increase of 0.2 percentage points compared with last year.
The move will enhance counter-cyclical adjustment to facilitate steady and rapid economic development. It will also accommodate tax and fee cuts on a larger scale, effectively lower the burden on enterprises and energize market entities, Liu said.
The appropriate increase of the deficit-to-GDP ratio, an important decision by the Central Committee of the Communist Party of China and the State Council, was in line with economic and social development needs and sustainable fiscal development, he added.