China Plans Record Budget Deficit to Fund Infrastructure, Boost Economy

China considering increasing budget deficit by $137B to spend on infrastructure projects, aiming to boost economy.

Proposed stimulus spending would surpass China's 3% of GDP budget deficit target.

News boosted Chinese stocks, though markets have struggled this year despite previous stimulus efforts.

Additional spending risks further weakening the yuan if debt issuance expands too much.

Move signals China will correct past policy errors with more money printing and likely currency devaluation.