China Runs Record Budget Deficit as Social Spending Growth Soars

China’s government racked up a record budget deficit last year as spending on social welfare grew at the fastest since 2017, marking a shift in fiscal priorities during months of trade tensions with the US.

Broad expenditure climbed almost 4% from a year earlier, exceeding government revenue by 12.7 trillion yuan ($1.8 trillion), according to Bloomberg calculations based on data released by the Ministry of Finance on Friday. Combined outlays that cover areas from education and social security to healthcare rose 9.5% from a year earlier.

The largesse stood out in a year defined more by ...