China's budget deficit widens 600% as Covid-19 pandemic cuts revenue

China’s broad budget deficit in the first six months of the year widened to a record as government spending climbed and falling land sales and tax cuts cut income.  

The deficit in the budgets for all levels of government was 5.1 trillion yuan ($758 billion), according to Bloomberg calculations based on data from the Ministry of Finance released Thursday. That was the highest ever for the first half period and compares with a shortfall of just 718 billion yuan in the first half of last year and a gap of 3.4 trillion yuan at the same point in 2020.

China’s finances have