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Budget Deficit to Fall in 2005
China's 2005 budget deficit will amount to some two percent of the country's gross domestic product, or 300 billion yuan or 36 billion US dollars, down from 319 billion yuan in both 2003 and 2004.

China Business News said Wednesday that the country's budget will be presented for approval by Finance Minister Jin Renqing at the upcoming annual session of the National People's Congress next month.

The report said the deficit is expected to remain stable over the coming years as the government continues adjusting its expansionary fiscal policy toward a more "prudent" stance, as the economy grows sharply.

China Business News also reported that the finance ministry will reduce its annual issuance of special treasury bills, used to finance infrastructure and other stimulatory spending, to 80 billion yuan from 110 billion yuan in 2004.

(CRI February 17, 2005)

 

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