Growth target causes concern

Yin Zhongqing, deputy director of the finance and economic committee of the NPC, said there is some concern over about whether the 7 percent growth target could be met and recommended a more eased monetary policy.

He said liquidity may not meet the demands of the real economy, especially the needs of micro-, small- and middle-size enterprises which have been complaining about the difficulties and high cost of financing.

It is necessary to adjust the growth target down from 7.5 percent last year to 7 percent this year. Considering the lower target and the slowing down of the CPI, the M2 could be eased further. Proactive finance policies are necessary, he added.

"The Premier said the financial deficit rose from 2.1 percent to 2.3 percent indicating 170 billion yuan more in the budget for the central government, and 100 billion yuan for local governments. Economic growth will be funded by the 100 billion yuan local debts and one trillion yuan swap debts," he said.