BEIJING, March 7 (Xinhua) -- China's fiscal deficit target this year is proactive and prudent, Finance Minister Xiao Jie said Tuesday.
Xiao made the remarks at a press conference on the sidelines of the annual parliamentary session.
Fiscal deficit this year is projected to be 3 percent of GDP, or 2.38 trillion yuan (about 345 billion U.S. dollars),according to a government work report delivered by Premier Li Keqiang on Sunday.
The deficit-to-GDP ratio will stay unchanged from last year, with the fiscal deficit figure increasing by 200 billion yuan to meet the demands for tax cuts and expenditure in key areas such as supply-side structural reform, according to the minister.
"China's government debt ratio is relatively low compared with other countries, which leaves enough leeway for further adjustment," he said, adding that the decision on further fiscal deficit expansion depends on the future demand and debt-paying ability of the government.
"The fundamentals for China's long-term growth have not changed," he said, voicing confidence that the country's expanding economy will serve as the basic support for the government solvency.