November 29, China’s fiscal expenditure in the last 2 months of this year is expected to hit RMB 3.2 trillion, yet the massive demand for funds at the end of the year may not be enough to ease the pressing liquidity shortage, the official China Securities Journal reported on Tuesday.

More macro-economic data are showing that economic growth is at risk of slowing. With the loosening of the nation’s monetary possible, the deposit reserve ratio is likely to fall at any time.

Fiscal revenue in the first 10 months jumped 28.1% from a year earlier to RMB 9.09 trillion, according to Ministry of Finance data. With estimated fiscal revenue growth of 15% and 13% in November and December, respectively, full-year revenue could reach RMB 10.47 trillion.

But fiscal expenditure may outstrip revenue. Data from financial institutions predict large expenditures at the end of the year.

Source:21cbh.com