7 Mar 2016
Larger fiscal deficit ratio to prevent slide in economic growth – China’s FinMin Lou
China’s finance minister Lou was on the wires last hours via Reuters, and advocated fiscal reforms.
Key Quotes:
Banks non-performing loans to rise further
Tax reform is slower than expected
Actual fiscal deficit to GDP ratio at 2.4 pct in 2015
Larger fiscal deficit ratio in 2016 to prevent slide in economic growth, push forward structural reform
Can’t raise fiscal deficit/GDP ratio by too much
Still has room for Chinese Govt debt growth
To step up regulation of local Govt debt
Will improve management of local government debt to prevent debt issuing beyond budget limits
Key Quotes:
Banks non-performing loans to rise further
Tax reform is slower than expected
Actual fiscal deficit to GDP ratio at 2.4 pct in 2015
Larger fiscal deficit ratio in 2016 to prevent slide in economic growth, push forward structural reform
Can’t raise fiscal deficit/GDP ratio by too much
Still has room for Chinese Govt debt growth
To step up regulation of local Govt debt
Will improve management of local government debt to prevent debt issuing beyond budget limits