China May Need to Raise Budget Deficit Goal, Ex-Finance Minister Says

(Bloomberg) -- China may need to set a budget deficit target at above 3% of gross domestic product next year, as the country strives to improve its economic performance, former Finance Minister Lou Jiwei said.

Fiscal policy should continue to focus on cutting taxes and fees, Lou said Sunday at the China Wealth Management 50 Forum, according to a report in the China Securities Journal. A deficit ratio of above 3% would be higher than the target of 2.8% set for this year.