"There is no consensus on the warning line in terms of the ratio," Zhuang Jian, senior economist with the Asian Development Bank in Beijing, told China Daily. "But generally if it is below 30 percent, people would think it is safe."

He explained the ratio was much higher than 30 percent in many countries, such as Japan and the United States, meaning China still has room to issue more bonds in the coming years if global or domestic economies remain sluggish.

Bi Jiyao, senior researcher for the National Reform and Development Commission, said the country could keep its deficit high in the coming years to stimulate the economy and invest in revamping the social security network.

The government saw its revenues lose their strong momentum at the second half of last year and, with the slump in the export industry, must greatly increase its spending to sustain domestic investment growth.

Sun Mingchun, an economist for Nomura International, said in a report that China can achieve 8 percent economic growth this year, while World Bank expert Louis Kuijs disagreed. "Given the very unfavorable international outlook for 2009, it will be very difficult to achieve," he said.

(China Daily March 6, 2009)