BEUING. Nov 10: China's soaring output of often unmarketable goods poses a threat to an economy staggering under the weight of heavily Indebted state enterprises and unwanted inventories, an official report warned Saturday, reports AP.

The China Daily also reported an estimate that China's budget deficit for 1991 was likely to reach 60 billton Yuan (11.1 billton Dollars), and that Its trade deficit grew for the third straight month.

A States Statistics Bureau trolled industrial growth could overwhelm the central government if it rises above 15 per cent. The China Dally said. It said industrial output In the first 10 month* of this year was 13.9 per cent higher than the same period last year.

The government has spent heavily making up its enterprises debt*. It ordered each

province last month to shut down 10 failing state-owned businesses, signaling that it was running out of resources to ball them out

State-run enterprises continue churning out shoddy goods that are shunned by consumers, building up stockpiles of unsold goods and driving the businesses deep into debt.

The fact that industrial production has sustained high growth rates should merit highly serious attention," said a statement from the Statistics Bureau.

Previously, bureau spokesman Zhang Zhongji said he expected the annual rate of industrial growth to be around recent for this year, the newspaper said.

Government figures show that industrial production In October was 14.3 per cent higher than October 1990, the newspaper said. It said the value of Industrial production last month was 204.5 billion Yuan (38.2 billion Dollars), but gave no figure for October 1990.