China can consider increasing its budget deficits, ex-finance minister says
Get link
Facebook
X
Pinterest
Email
Other Apps
China can consider increasing its budget deficits, ex-finance minister says.
(credits: google)
Some local governments have distributed consumption vouchers to encourage consumption.
But those actions remain insufficient.
China will have difficulty achieving its official 2022 economic growth target of about 5.5 percent.
If more deficit spending is required to fund assistance for small firms, China can consider it, according to a former finance minister on Saturday.
Lou Jiwei said at the Caixin Summer Summit in Beijing that while some local governments have distributed consumption vouchers to encourage consumption, those actions remain insufficient because of a sharp reduction in fiscal revenue at all levels.
Also Read
China’s June manufacturing inflation slows down but consumer prices rise
China's factory-gate inflation cooled in June to the lowest in 15 months....
Although China has recently released a variety of economic support measures, analysts claim that the country will have difficulty achieving its official 2022 economic growth target of about 5.5 percent.
The second-largest economy in the world has received a lot of support this year from fiscal stimulus intended to offset the effects of COVID-19.
In order to meet the 3.65 trillion yuan special bond quota for 2022, the cabinet has instructed local governments to issue 3.45 trillion yuan ($515 billion) in special bonds for infrastructure by the end of June.
In the fourth quarter of this year, China will issue part of the bonds it plans to issue in 2023 ahead of schedule, with the new quota probably exceeding 1.46 trillion yuan for 2022.
Lou, who is currently a member of a leading political advisory group, claimed that there is still some room for the central government to distribute monies.
We can raise the central and local budget deficits as needed, he continued.
1 USD equals 6.6945 CNY (renminbi)
Also Read
US expands economic conflict with China and Russia
US aims to expand export bans on China over security and human...
The US dollar was seen losing ground against the rupee in interbank trading on Wednesday morning as it fell by 50 paisa, with analysts linking the development to optimism surrounding the expected release of loan tranches by the International Monetary Fund (IMF). According to the Forex Association of Pakistan (FAP), the greenback depreciated Rs1.45 against the previous day's close of Rs206 to reach Rs204.55 around 1:20pm. The FAP's closing rate of the last session shows a difference of 87 paisa from that of the State Bank of Pakistan, recorded at Rs206.87. By closing time on Wednesday, the greenback was being traded at Rs205.50 in the interbank. Exchange Companies Association of Pakistan General Secretary Zafar Paracha attributed the international currency's fall to the possibility of the IMF releasing two combined tranches of around $1.85 billion instead of the initially expected single tranche of around $1bn. On Tuesday, Pakistan received the Memorandum of Eco...
The rupee, which has been on an upward trend for more than a week now, continued strengthening against the dollar in the interbank market on Friday. By 10:05am, the local currency had gained Rs2.15 against the dollar to reach Rs224, up 0.95 per cent from yesterday’s close of Rs226.15. The rupee had been on a consistent decline from July 15 and fallen to a record low of 239.94 on July 28. But since July 29, it has reversed gears and its value had risen by Rs14.15 till yesterday (Aug 4). The biggest hike was seen on Wednesday (Aug 3), when the rupee appreciated by a record single-day gain of Rs9.59 or 4.19pc. This major gain by the rupee has brought exchange rate stability as currency dealers feel that the fluctuations would not be as volatile as were witnessed in July when the greenback gained over 13pc in a single month against the local currency. More to follow. Source link
https://www.news.qm.com.pk/pkr-gains-rs2-15-against-dollar-in-interbank-market-business/?feed...
Comments
Post a Comment