March 9, 2016 / 2:11 AM / a year ago

China's bigger budget deficit is mainly to finance tax cuts: official

A man walks on the bund in front of the financial district of Pudong in Shanghai, China March 9, 2016.Aly Song

BEIJING (Reuters) - China's wider fiscal deficit budgeted for 2016 will be mainly used to finance tax cuts, a senior official of China's cabinet research unit said on Wednesday.

The comments from Huang Shouhong, deputy director of the State Council Research Office, came from a briefing in Beijing.

China budgeted a 2016 deficit of 3 percent of gross domestic product (GDP), the Ministry of Finance said on March 5 in its work plan unveiled at the annual meeting of parliament.

The fiscal deficit to GDP ratio was budgeted at 2.3 percent in 2015.

Reporting by Kevin Yao; Editing by Shri Navaratnam

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