China's final 1986 budget deficit was7.05 billion yuan, down from 7.05 billion given in the March
budget speech and against a surplus of 2.1 billion in 1985,
Tian Yinong, Vice Minister of Finance, said.
    The New China News Agency quoted Tian as putting total 1986
state income at 226.03 billion yuan, up from 186.6 billion in
1985, and 1986 spending at 233.08 billion, up from 184.5
billion.
    He blamed the 1986 deficit on excess demand, a rapid
increase in consumption funds and capital investment and losses
by state firms.
 REUTER
