China eyes fiscal splurge to cushion reforms, slowing growth
Bigger deficit among recommendations made to leaders at recent meeting that set economic agenda for next year
Beijing
CHINA could run its biggest budget deficit in perhaps half a century next year as leaders turn to government spending to arrest the slowdown in the economy, policy advisers say, after disappointing returns from a year of monetary policy easing.
The government is expected to increase its budget deficit to about 3 per cent of gross domestic product in 2016 from a target of 2.3 per cent this year to help cushion against the possible impact on the economy from structural reforms, the advisers said.
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