The Chinese government will issue new bonds to support the economy

Ahmedabad: Chinese President Xi Jinping has announced several support measures to support the economy and has now decided to issue government bonds. However, this move by the government will increase the budget deficit ratio.

The proposal has received the approval of China's parliament, the National People's Congress, controlled by the Communist Party. According to the proposal, the fiscal deficit will widen to around 3.8 percent of GDP in 2023, higher than the government's March target of 3 percent.

Under this plan, the government will issue bonds worth $137 billion in the fourth quarter.

This money will be used for disaster relief works and construction. The Chinese government rarely changes budget targets mid-year. Earlier, the government had changed it in 2008. The government also made changes in the late 1990s after the Asian financial crisis.

Interestingly, Xi Jinping also visited the Central Bank on October 24. This was his first visit to the central bank since becoming president a decade ago. This move by the government shows that China is currently stuck in a long-term slump.

According to economists, China's growth rate is expected to slow to 4.5 percent in 2024, as commodity prices continue to fall due to a crisis in the property market and a slowdown in demand.