Ministry of Finance: various factors need to be considered on deficit ratio adjustment

Xu Hongcai, deputy minister of the Ministry of Finance, said that determination on the fiscal deficit is based on comprehensive consideration of various factors such as the economic situation, the state macro-regulation, and the status of fiscal revenues and expenditures at the press conference of the joint prevention and control mechanism of the State Council on March 5.

Will China raise the deficit ratio due to the epidemic? Ministry of Finance responded for the first time to the general concern of the market.

Xu Hongcai, deputy minister of the Ministry of Finance, said that determination on the fiscal deficit is based on comprehensive consideration of various factors such as the economic situation, the state macro-regulation, and the status of fiscal revenues and expenditures at the press conference of the joint prevention and control mechanism of the State Council on March 5.

According to Xu, the motion of whether to raise the deficit ratio needs to go through statutory procedures and be submitted to the NPC for deliberation.

Xu emphasized that China has enormous economic development potential and strong resilience, so the positive trend of long-term development will not be changed. Besides, China has a relatively large space for structural adjustment.

As the epidemic fades away, China’s economy will recover, and the contradiction between fiscal revenue and expenditure will be eased.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/06/ministry-of-finance-various-factors-need-to-be-considered-on-deficit-ratio-adjustment/.

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