Increase of 100 billion deficit last year was still manageable, experts say

Chinese Premier Wen Jiabao on the 5th National People's Congress announced that his government work report that China's national budget deficit this year will reach 1.05 trillion yuan more than last year over 1000 billion yuan, reaching the highest level. If China's economic growth this year expected to reach 8%, then China's central government deficit of GDP, accounted for only 2.8%."Deutsche Welle", said experts generally believe that this is a controllable, be able to afford.

According to "Deutsche Welle" Chinese Net 5, reported that Premier Wen Jiabao in his report that the increase in the national budget deficit in part because the international economic crisis, slowing growth in state revenues, expenditures greater pressure. While the government work report that in 2010 the overall situation of public finances, compared with last year there had been some improvement, but still be regarded as a complex. Shanghai University of Finance and Finance Institute Professor Zhou Jizhong the view that although the world economic crisis has been signs of improvement, but not thoroughly recovery remains uncertain. Therefore, can not immediately withdraw from an active fiscal policy. He said: "China's economic situation in the world economy in 2009, very good circumstances, with a very active fiscal policy and loose monetary policy to stimulate vigorous, so that China's economy maintained a growth target of more than 8%. Should be said that the results are quite good. But the problem is that the current world economic situation turns warm again, is not able to withdraw such an active fiscal policy, which is must be carefully considered. "

Zhou Jizhong said that it was because last year the country's public investment has begun, and many more long-term project must continue. This is also the necessity of the resulting investments: "From the actual situation, particularly with regard to public investment, they are fairly consistent, and this year investment, to the second year, third year of follow-up investment needs. In this circumstances, even if other economic conditions improve, it is impossible to abolish these items off. such circumstances, the Chinese Government for renewal of this relatively loose fiscal policy, should be more reliable, safer strategy. "

Zhou Jizhong said: "Although this figure is increasing in absolute numbers, but China's GDP, the absolute number is increasing. National GDP, the fiscal deficit below 3% only. This is in most countries in the world, prevailing standards, is a relatively healthy number. like the European Union and some other parts of the provisions of GDP, the deficit should not exceed 3%, while China is not even 3 that there is some scope, therefore, the deficit itself is not something that we are too scared. I think, This one controllable, affordable within the scope of a number. "(Global Network)