China's Minister of Finance Liu Kun (C), and vice ministers Cheng Lihua (2nd R) and Liu Wei (2nd L) attend a press conference on the country's fiscal and tax reforms and fiscal work for the second session of the 13th National People's Congress in Beijing, capital of China, March 7, 2019. (Xinhua/Shen Bohan)
China's deficit-to-GDP ratio target this year is proactive and realistic, China's finance minister said Thursday.
The appropriate increase of the deficit-to-GDP ratio is an important decision of the Communist Party of China Central Committee and the State Council in line with economic and social development needs and sustainable fiscal development, Liu Kun, Minister of Finance, told a press conference on the sidelines of the annual legislative session.
The move will enhance counter-cyclical adjustment to facilitate steady and rapid economic development. It will also accommodate to tax and fee cuts in a larger scale, effectively lower the burden on enterprises and energize market entities, Liu said.
China has lifted its fiscal deficit target to 2.8 percent of GDP for 2019, up by 0.2 percentage points compared with 2018.
