CHINA—The Fifth Session of the Tenth National People's Congress (NPC) was held in Beijing on March 5. Premier of the State Council Wen Jiabao delivered the government Work Report. Wen said that the budget deficit predicted for 2007 is 245 billion yuan (approximately USD 32 billion), which is 50 billion yuan less than in 2006. However, China still has a massive budget shortfall.
Last year, China's Ministry of Finance submitted a budget report to the Fourth Session of the Tenth NPC. The deficit was as high as 295 billion yuan, which was five billion yuan less than in 2005.
In 2005, China's budget deficit reached 300 billion yuan, which was 19.83 billion yuan less than the deficit in 2004.
In each of 2003 and 2004, China had the same deficit, 319.8 billion yuan.
Since the First Session of the Ninth NPC in 1998, China's annual budget began showing a deficit that has risen exponentially. From 1998 to 2003, the reported deficit was 46 billion, 150.3 billion, 229.9 billion, 259.81 billion, 309.8 billion and 319.8 billion yuan, respectively.
Meanwhile, Wen also indicated in his report that 50 billion yuan of long-term treasury bonds will be issued this year.