China could in theory raise its budget deficit to more than 4 percent of gross domestic product to help support growth, a senior central bank researcher wrote in a commentary posted late on Wednesday.
China has been expected to run a larger budget deficit this year as leaders turn to government spending to arrest the slowdown in the economy after disappointing returns from a year of monetary policy easing.
“In the near future, it’s possible to raise China’s fiscal deficit rate to 4 percent, or even higher,” Sheng Songcheng, director of the Survey and Statistics Department at the People’s Bank of China (PBOC) wrote on “The Economic Daily” website.
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