China is aiming for a budget deficit of around 4 percent of GDP – the highest level in more than three decades, according to official documents that Bloomberg has access to.
The move is expected to release funds for new stimulus measures, which can counteract the effects of the US's new tariffs on China.
At the same time, China is setting its growth target at "around 5 percent" for the third year in a row.
The domestic market is to become the "main engine" for the country's economic growth, according to the annual report presented by Prime Minister Li Qiang to the annual People's Congress, comprising around 3,000 members.
"We should move faster to address inadequate domestic demand, particularly inadequate consumption, and make domestic demand the main driver and anchor for economic growth," the government report states.
The growth target and budget forecast are roughly in line with expectations, according to Bloomberg.
