China's proactive fiscal policy will continue in 2016 and its general public budget deficit will expand, China International Capital Corp (CICC) said in an analysis.
Analysts at the investment bank forecast the deficit in 2016 to reach 2.2 trillion yuan ($336 billion), or 3 percent of GDP.
A national fiscal work conference statement said last month that China will widen its budget deficit in 2016 and gradually raise its fiscal deficit ratio.
In an effort to shore up growth, China raised its deficit-to-GDP ratio to 2.3 percent for 2015 from 2.1 percent in 2014.
A 3 percent deficit ratio is generally considered a "red line," but current opinion in China favors a higher ratio as it will enable the government to cut taxes, encouraging more production.
Xinhua contributed to the story.
