Deficit may show first decline in eight years

Finance Minister Jin Renqing will present China's 2005 budget in March, state media reported. If approved, it would represent the first budget reduction in eight years, and China's budget deficit would equal 2% of the country's GDP, or RMB300bn (US$36 bn), down from RMB319bn in 2003 and 2004. Citing a China Business News report, state media reported the deficit is expected to remain constant as the government tweaks its expansionary fiscal policy, taking a more "prudent" stance. CBN also said the finance ministry would issue fewer treasury bills, valued at RMB80bn, down from RMB110bn in 2004.