Plan for big increase in spending on rural population in bid to ease income disparity
The central government is forecasting its budget deficit will drop this year to 295 billion yuan - or 1.5 per cent of gross domestic product - as it continues a two-year-old campaign to rein in state spending and encourages higher public consumption.
It is also budgeting for a big increase in spending on the rural population as part of efforts to ease tensions caused by the widening urban-rural income gap.
A 300 billion yuan budget deficit was forecast last year.
The government predicted that figure would fall by 5 billion yuan this year.
Revenue is expected to grow 11.7 per cent year on year, to 1.927 trillion yuan, while spending is expected to rise 9.7 per cent and expand to 2.22 trillion, according to a report seen by the Sunday Morning Post yesterday.
