Larger fiscal deficit ratio to prevent slide in economic growth – China’s FinMin Lou

By FXStreet 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
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Source:: FX Street