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Government to cut 2007 budget deficit to 1.1% of GDP

(Dow Jones)
Updated: 2007-03-05 11:28

China's budget deficit is expected to narrow to 245 billion yuan (US$31.62 billion) this year, or 1.1 percent ofgross domestic product, from an actual fiscal deficit of 275 billion yuan in 2006, according to the government's budget report from the Ministry of Finance.

Last year's fiscal deficit was 1.3 percent ofGDP, it said.

The report was presented Monday on the opening day of the annual National People's Congress.

The government's fiscal revenue in 2007 is expected to total 4.406 trillion yuan, up 13.8 percent from last year, it said.

The finance ministry also said in the report it planned to use tax policies to encourage imports.