China' Real Govt Budget Deficit Exceeds 10 pc of GDP

Bloomberg: Stealth China Stimulus Means Fiscal Gap Over 10%, Economists Say
China is stepping up stimulus by stealth in its efforts to ensure hitting the leadership’s growth target this year, with moves that will enhance the role of the state even as policy makers say they want a bigger role for the market.

The fiscal deficit when taking off-budget spending into account will exceed 10 percent of gross domestic product this year -- more than triple the government’s stated ratio of 3 percent, according to economists at UBS Group AG and JPMorgan Chase & Co.
Moral hazard out the wazoo.

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