Chinese treasury bonds next year the deficit may reach 5 billion
Central Economic Work Conference will be held next Monday in Beijing. Experts believe that in order to ensure 8 percent economic growth next year the primary goal of 4 trillion economy, as well as previous plans to boost the implementation of the Central Committee meeting is scheduled to be in the implementation of the proactive fiscal policy to take more decisive, "ultra-large" initiatives. According to the source, the central think-tank has made a very bold proposal that next year treasury bond issue worth 5,000 billion budget deficit is also close to 500,000,000,000. The "two-500000000000" decision-making has also attracted attention. A source pointed out that no matter how the final decision, good in recent years, China's financial situation for next year's introduction of super strength of the expansionary fiscal policy to provide a workable space. Not long ago, the Ministry of Finance Wang Jun, vice minister in a public made it clear that the proactive fiscal policy will affect the 2009 budget as well as in 2010, some investment funds will be achieved by expanding the deficit. As a result, the issuance of treasury bonds next year and the size of the deficit, the deployment into next year's economic work in two important indicators. Domestic demand, boosting demand, "the fiscal deficit should also be more" In fact, next year on the national debt limit and the size of the deficit, economists and government think-tank has proposed a wide range. Morgan Stanley chief economist for Greater China Wang believes that in the future if China's active fiscal policy and the strength of 97, when the Asian financial crisis and 01-02 years, a considerable downturn in the global economy, according to the size of the bond issues relative to the size of the economy or financial The proportion of the budget, the Chinese government may be spending plans to issue 350000-550000 million yuan of government bonds in order to stimulate economic growth. Standard Chartered Bank China chief economist Stephen Green is expected next year, the budget deficit or China's GDP will reach 1.5% to 2%, which is expected to add fat around 500,000,000,000 yuan of treasury bonds. Many scholars have said that the next year made a net increase of national debt will not be lower than 600,000,000,000 yuan. Financial estimates are here, next year if economic growth rate of 8% and 2% of the deficit calculations, the size of the deficit next year will be 5,000 billion yuan. Chinese Academy of Social Sciences Institute of Finance Director of the Center for evaluation of China's economy, said Liu Yu-hui, the "only domestic demand, private investment can be restored, inside and economic transformation in order to really hopeful. It seems to me that even if this extended to the size of the deficit to 3 % (Proportion of GDP accounted for), and even a little more is worth it. " In the past fiscal surplus ease regulation It is understood that in the preparations for this year's Central Economic Work Conference, brewing next year's economic target, the central macro transfer a number of departments have made special emphasis on control of the recommendations and proposals for central decision-making, the final decision. The issuance of treasury bonds next year 5,000 billion yuan, a deficit the size of about 5,000 billion is a lot of economic experts and think-tank the central tendency of one of the control program. However, this can be called "ultra-large" financial program to stimulate the economy eventually obtained a central high-level approval is not yet known, the decision-making can not be ruled out for further adjustment and modification. If the program at this meeting reach a consensus, including the issuance of treasury bonds and the size of the deficit, including a series of economic goals and ultimately to the government work report and budget report, submitted in March next year to consider the convening of the National People's Congress. However, the official pointed out that despite the existence of these variables, what is certain is that China's recent good economic performance and financial revenue and expenditure situation for next year China launched the "big" expansionary fiscal policy to provide a workable space. They stressed that even if the implementation of expansionary fiscal policy, the size of the deficit in 2009 will also be controllable. Wuhan University of Economics and Management College doctoral tutor Lu Hong Friends of the view that over the past few years a large number of budget surpluses, as well as the huge foreign exchange reserves combined with capital controls, China has made more capital and the advantages of dealing with the current crisis.