China flags more fiscal stimulus for economy
China pledged on Saturday to "significantly increase" debt to revive its sputtering economy, but left investors guessing on the overall size of the stimulus package, a vital detail to gauge the longevity of its recent stock market rally, Azernews reports via Reuters.
Finance Minister Lan Foan told a press conference Beijing will help local governments tackle their debt problems, offer subsidies to people with low incomes, support the property market and replenish state banks' capital, among other measures.
According to the information provided by the minister, China's state budget revenues are projected to fall below target this year, leading to a significant deficit of 4.06 trillion yuan (approximately $574 billion at current exchange rates).
Despite the anticipated shortfall, Minister Lan noted that the fiscal policy measures implemented by the Ministry of Finance in 2024 have had a "remarkable effect." He emphasized that these measures are successfully contributing to the achievement of the main goals of the national strategy, ultimately helping to maintain overall economic stability in the country.
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