BEIJING (Reuters) – China’s fiscal policy has “ample room” to support the economy, the central bank’s chief researcher said in an opinion column on Friday, adding that the policy has not been active enough.
China’s budget deficit goal this year of 2.6 percent indicates a contractionary fiscal policy and this year’s actual deficit ratio should be higher than last year’s 3 percent, Xu Zhong, the research head at the People’s Bank of China (PBOC), wrote for the financial media website Wallstreetcn.com.
Officials - China - Policy
Chinese officials have long stated China would maintain a proactive fiscal policy.
The government should use fiscal funds to replenish the capital of state-owned financial institutions and ease the strain in financial market deleveraging, Xu wrote.
Comments - Xu - Economists - China - Policy
The latest comments by Xu echo those from economists that China could deploy a much more active fiscal policy and fine-tune its monetary policy to shore up growth amid a slowdown in the world’s second-biggest economy as it extends a prolonged crackdown on financial risks and battles a heated trade war with the United States.
“China’s fiscal policy cannot be active if it still...
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