China says safe to raise deficit ratio and issue special treasury bond

It is necessary and safe for China to properly increase deficit ratio and issue special treasury bonds to help stabilize China's economy and even the world economy amid the coronavirus pandemic, the country's top economic planner said on Sunday.

"It is a special measure in a special period to raise the level of government debt. This set of fiscal policy matches the needs of China's economic development and debt risk prevention and control," said Cong Liang, secretary general of China's National Development and Reform Commission (NDRC).

"China's deficit ratio is currently not high globally," Cong added. As of the end of 2019, the Chinese government's debt ratio is 38.5 percent, far below the level of major developed economies and emerging market economies.