CONFIDENTIAL
10
機密
deficit-ridden government budget(12).
18.
It therefore appears
more likely that the
government will resort largely to monetary measures in adjusting economic activity. On 18 January 1993, Premier
Li Peng told a national financial conference that the
banking sector should bear a major responsibility in curbing inflation and excessive economic growth. Further, in presenting his work report to the Eighth National
People's Congress in March 1993, he reiterated the government's concern about the upsurge in inflation rate,
introduction of certain macroeconomic
and called for the
controls in order to achieve a better balance between
economic growth and price stability. This view was echoed by other Chinese leaders. In early April, senior officials of the People's Bank of China indicated that a tighter
monetary policy would be pursued to contain the
intensifying inflationary pressures.
(12)
1986
1987
1988
1989
1990
1991
1992
China's fiscal deficit, 1986-1992
Fiscal deficit (Rmb billion)
Adjusted fiscal deficit' (Rmb billion)
-7.1
-8.0
-7.9
-9.2
-14.0
-21.1 -23.7
-20.9
-24.9
-34.9
-37.5
-51.5
-66.6
-90.5
declared
* This is the officially
fiscal deficit plus the increase in total government debt, including both domestic and foreign debts. Most major industrialised countries reckon their fiscal deficits on this basis, i.e. a deficit is budgetted for and then the borrowing requirements are prescribed.
GF 323
CONFIDENTIAL ##