China may need more deficit spending-gvt researcher

BEIJING, March 5 (Reuters) - China may have to increase its budget deficit beyond the figure of 950 billion yuan announced in Thursday's budget if growth does not pick up by mid-year, a Ministry of Finance researcher said.

"China may have to widen the fiscal deficit further if the economic situation continues to be weak in the second quarter," the researcher, Jia Kang, told reporters on the sidelines of the annual session of the National People's Congress, the largely ceremonial parliament.

Jia said China's fiscal position to date was healthy. He said the 4 percent inflation target set by Premier Wen Jiabao factored in a possible rebound in price pressures in the second half of the year. (Reporting by Zhou Xin; Editing by Alan Wheatley)