CHINA-ECONOMY: FORMER FINANCE MINISTER SAYS GENERAL PUBLIC DEFICIT IS 6.1 PER CENT AND NOT 3.6 PER CENT AS STATED BY CENTRAL GOVERNMENT
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Sina reported (August 27) and the Shanghai-based 'The Paper (August 30) that at a recent symposium of the Global Wealth Management Forum (GAMF) on “Global Economic and Financial Situation and the Future Development of the Financial Industry in Crisis”, former Chinese Finance Minister and current Director of the CPPCC Foreign Affairs Committee, Lou Jiwei, said in a speech recently that the real general public deficit is 6.1 per cent. The main points of his speech were: The central government outlined a general public budget deficit of 3.6% of GDP (or more) at the Two Sessions in May; The additional RMB 1 trillion in special treasuries bonds (STBs) that were issued adds 1 percentage point to that number; The RMB 1.5 trillion increase in local special project bonds (SPBs) over the 2019 level adds another 1.5 percentage points; and That puts the real fiscal deficit for 2020 at 6.1%, at least.
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