Chinese fiscal deficit likely to decrease in 2011
BEIJING - China's fiscal deficit might decrease below 2 percent of GDP in 2011, but government measures will still be proactive enough to shore up stable economic growth with a focus on growth pattern transition, said analysts.
The Political Bureau of the Communist Party of China Central Committee announced on Dec 3 that the country will implement a proactive fiscal policy and a prudent monetary policy next year, and increase the flexibility and effectiveness of macroeconomic adjustments.
Lu Zhengwei, chief economist with the Industrial Bank, said the decision indicated that the 2011 fiscal outlay and deficit will not shrink notably compared with this year. However, the focus will be firmly on the promotion of economic restructuring, instead of guaranteeing the growth rate.
