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China raises budget deficit to 2.8 percent of GDP - policy report

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China raises budget deficit to 2.8 percent of GDP - policy report
FILE PHOTO - A female migrant construction worker walks into her dormitory near newly-built residential apartments in Shanghai August 12, 2013. REUTERS/Aly Song/File Photo   -   Copyright  Aly Song(Reuters)
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BEIJING (Reuters) – China set a 2019 budget deficit target that’s higher than last year’s ratio and said its fiscal policy would be more “proactive and effective”.

The Ministry of Finance said on Tuesday that it is targeting a budget deficit of 2.8 percent of gross domestic product (GDP) for this year, compared with 2018’s 2.6 percent target.

Investors are watching for signs of government policy easing to revive slowing growth amid a trade war with the United States.

Policymakers have pledged to step up support for the cooling economy this year, following a raft of measures in 2018 including fast-tracked infrastructure projects and cuts in banks’ reserve requirements and taxes.

(Reporting by Zhang Min and Lusha Zhang; Writing by Yawen Chen; Editing by Sam Holmes)

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