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China orders $ 190 m cut in budget deficit
BEUING. Apr 5: China has taken the unusual step of ordering a one billion Yuan (190 million Dollar) cut in the 1991 budget deficit, reports Reuter.
The State Council, the top government body, has ordered a redrafting of the budget to trim 500 million Yuan (96 million Dollars) from spending and add a similar amount to revenues, the official New China News Agency said on Thursday.
The budget presented to Parliament only last week called for a deficit of 13.3 billion Yuan (2.6 billion Dollars) tn 1991.
The revisions would pare that to 12.3 billion Yuan (2.46 billion Dollars).
It is very rare, said a western diplomat. The budget is usually just accepted by Parliament.
The news agency quoted Chen Muhua. Vice Chairman of the National People's Congress, the largely ceremonial Parliament, as saying that new sources of revenue were needed and that spending had to be brought under control.
The 1990 budget deficit ballooned to 14 billion Yuan (2.9 billion Dollars)— more than six billion Yuan (1.1 btl-iibn Dollars) over target.
The deficit is even wore-when calculated by the Inter national Monetry Fund, which unlike China, does not treat foreign and domestic debt as Income.
Exclusing this, budget deficit stood at 50 9 billion Yuan (9.8 billion Dollars) Iasi year and before the latest revisions was set to reach 48 6 billion Yuan (9.3 billion Dollars) this year.
Finance Minister Wang Bingqian, tn his budget speech last week, said that failure to reach budget targets this year could harm the nation's political stability.
The budget has been bloated by mounting costs of subsidizing inefficient state tn dustry and holding back living costs for urban consumers.
China also wants to boost military spending this year by 12 per cent.
There were no specific items trimmed. The news agency quoted Chen, the former head of the central bank, as saying only that there should be corresponding adjustments in specific items of revenues and expenditures.
The agency said deputies to Parliament had expressed great concern over the nation's severe financial difficulties.