At the end of the first nine months of 2022, China's budget deficit reached a record 7.16 trillion yuan, or about $ 980 billion. This figure came close to a record level because of the COVID-19 outbreak in major cities and the decline in the housing market, reports Bloomberg with reference to statistics from China's Ministry of Finance.

China's budget deficit approached a record $1 trillion and stood at 7.16 trillion yuan ($980 billion). The deficit in the first nine months is almost three times what it was last year. Falling land sales, tax incentives are reducing government revenues, the story says.

By comparison, China's budget deficit was 2.6 trillion yuan in January-September last year. Coronavirus lockdowns have led to a sharp increase in government spending to ensure an optimal level of safety on the streets of major cities, including spending on monitoring and testing people, said Goldman Sachs Group Inc. economist Lisheng Wang.

China's fiscal environment has faced significant challenges since the spring of this year, driven by a sharp decline in land sales, massive tax breaks and deferrals, and increased spending to combat Covid, Wang concluded.