In his recent article on the Economic Daily's website, Sheng Songcheng, the head of Central Bank’s statistics department says that China is able to increase its budget deficit to 4% or even higher.

ANBOUND’s research team points out that a higher budget deficit rate is important in sustaining steady economic development while promoting the reform of the supply front. The computation made by the Central Bank too has confirmed that there is still room for China to implement a more proactive fiscal policy.

We expect that in the upcoming "two session", the plenary sessions of the National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the central government will adopt the new approach proposed by the central bank’s officers and the budget deficit rate will be set at around 4%.