China unveiled a record fiscal deficit and pledged to accelerate the restructuring of its bloated state- owned industries while still setting a weaker growth target for this year.
Premier Li Keqiang announced a 6.5 percent to 7 percent expansion goal on Saturday, down from an objective of about 7 percent last year and the first range the government has offered since 1995. The government also abandoned its trade target, underscoring the degree of uncertainty about prospects for global growth. The details were given in Li’s work report at the annual meeting of the ceremonial legislature in Beijing.
The plan reflected the government’s determination to maintain growth and put off confronting its debt—now nearly 250 percent of gross domestic product.