China Likely to Break With Past Precedent on 2024 Budget Deficit to Prop Up Slowing Economy
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China likely to set 2024 budget deficit above 3.5% of GDP, breaking with past precedent of keeping it at 3% or lower.
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Move would boost fiscal support for economy expected to remain weak.
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Some economists recommend deficit as high as 3.8-4% of GDP in 2024.
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Wider deficit measures including local government bond issuance could be 11% of GDP.
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Lively debate in Beijing on appropriate 2024 deficit target, some say could exceed 3.8% with top leadership approval.