China’s budget deficit in 2016 will amount to 3% of GDP

Almaty. February 1. Silkroadnews - In 2016 China’s budget deficit will make 3% of GDP, the informational portal China news reports.
Chinese preventive fiscal policy will continue in 2016 and the overall deficit of the state budget will increase, the analysis by “China International Capital Corp” (CICC) forecasts. The analysts of the investment bank suggest that the budget deficit in 2016 will reach 2.2 trillion yuan ($336 billion), or 3% of GDP.
It is noted that in 2015 China increased the rate of the budget deficit as a percentage of GDP.
“The statement by the national financial conference last month said that China will increase the budget deficit in 2016 and, accordingly, will increase its rate of fiscal deficit. In an effort to strengthen economic growth, China has raised the rate of the budget deficit as a percentage of GDP to 2.3% in 2015 from 2.1% in 2014,” - the newspaper notes.  
It is reported that further increase in the budget deficit norm is also possible.
“A 3% norm of deficit is considered as a “red line”, yet there is an opinion in China at present that a further increase is quite possible as well, since can allow the government to reduce the taxes, thus stimulate the production,” - says the publication.