The key problems faced by China on its fiscal policy are its deficit rate and its debt ratio.

ANBOUND's research team points out that under the new normal, there are many key tasks to be performed pursuant to the 13th five year plan and China should increase the deficit rate moderately.

The deficit rate of 4.5% is not only appropriate in the coming period of time but it also helps to realize the steady economic growth and to strike the right balance in controlling the fiscal risk.