China eyes fiscal splurge to cushion reforms, slowing growth

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.