China sets 2012 budget deficit at 1.5 pct of GDP

BEIJING, March 5 China budgeted spending of 12.43 trillion yuan ($1.97 trillion) in 2012 and a deficit of about 1.5 percent of GDP, the finance ministry said on Monday in its work plan unveiled at the annual meeting of parliament, the National People's Congress.

The government also pledged to implement a proactive fiscal policy for 2012, but analysts do not foresee a repeat of the 2008 stimulus that injected some 4 trillion yuan into the economy as policymakers are still trying to bring back under control the inflationary and speculative forces it unleashed.

The budgeted deficit for this year compares with the 1.1 percent of gross domestic product deficit in 2011.

Revenue for 2012 was forecast at 11.36 trillion yuan, according to the document from the finance ministry.