The Chinese Premier Jiabao proposed draft budget envisages a deficit of 1.05 trillion. dollars, or about 2.8 percent of gross domestic product this year. Negative balance due to increased costs for construction of housing for the poor and for rural and agricultural regions in the country, transmitted Market Watch. About 850 billion yuan will be the deficit of the central government, and another 200 billion will be generated by the local authorities plans show the prime minister. In 2009 the budget deficit reached 950 million dollars, which is highest in absolute value for the last six years. Gross domestic product rose by even 8.7 percent to 33.5 trillion. yuan, the government estimates show.
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