China’s budget deficit for 2016 is expected at the level of $306 billion

Almaty. February 17. Silkroadnews - This year the budget deficit of China will amount to 2 trillion yuan ($306 billion), equivalent to 3% of GDP, the Director of the Institute for Financial Studies at the Chinese Academy of Social Sciences Gao Peiyong stated, TASS agency reports.
According to him, during the period of implementation of the 13th Five-Year Plan (2016-2020) the budget deficit will increase further.
“The tax system reform is being carried out at present, thus, it will be quite hard to avoid decline of revenues inflow to the budget,” – he says adding that “the reforms are also undertaken in other sectors of the economy, resulting in further increase in the load for the budget.”
Among the reasons for the state revenues reduction Gao Peiyong also pointed to a slowdown in GDP growth.
“Along with the economic slowdown there is a reduction in the budget revenue inflow. In 2011 budget revenue grew by 24.8%, in 2015 it slowed to 8.4%,” - the expert believes.
According to his calculations, in 2016 the pace of China’s GDP growth will amount to 6.8%.    
    As previously said the chairman of the National Development and Reform Commission Xu Shaoshi, based on the results of 2016 China’s GDP growth is projected at 6.5-7% level.
According to the State Statistical Administration of China, in 2015 China’s GDP growth rate reached 6.9%, which is the lowest indicator since 1990. Thus, last year has not become an exception within the general trend of the Chinese economic growth slowdown. In 2010 GDP growth was 10.4%, in 2011 - 9.2%, and in 2012 - 7.8%. At the end of 2013 it has slowed to 7.7% with further decline to 7.4% in 2014.