China signals higher spending, lower growth target of 7%

BEIJING: China plans to run its biggest budget deficit in 2015 since the global financial crisis, stepping up spending as Premier Li Keqiang signalled that the lowest rate of growth in a quarter of a century is the “new normal” for the world’s No. 2 economy.

Speaking at the opening of the country’s annual parliamentary meeting yesterday, Li announced a growth target of around 7% for this year, below the 7.5% goal that was narrowly missed in 2014.