China's 950 billion yuan (about US$139 billion) fiscal budget in the country's budget for 2009 is under control, Wang Jun, Vice Finance Minister said on Sunday at the China Development Forum 2009.
Faced with economic downturn under the impact of the global financial crisis, the Chinese government has taken an active fiscal policy and increased central spending since the second half 2008. The national fiscal deficit was 110 billion yuan last year, lower than 1 percent of the total GDP.
Wang described this year's sum as never seen before in history, but stressed the risks were totally controllable considering China's economic foundation and a strengthened finance.
The planned 950 billion yuan, a majority of which would be raised through bond issuance, accounted for about 2.9 percent of GDP. Government bonds were estimated to take up about 20 percent of GDP in 2009.
Both figures were within the international safety line set for the proportion of deficit and government bonds to a nation's GDP, which is 3 percent and 60 percent, respectively.
An active fiscal policy certainly would bring about some fiscal risks, according to Wang. He said the government has been working on a series of measures against possible financial threats.
(Xinhua News Agency March 23, 2009)
