The Chinese government will maintain prudent monetary and proactive fiscal policies during the year ahead, according to statements which emerged from the central economic work conference held in Beijing over the weekend.

These remarks have been interpreted by some analysts as a sign that the country's deficit will increase in 2013, according to a report by the China Times Saturday.

During periods of economic weakness, countries can usually be excused for temporarily running up their deficits for the sake of development further down the road. Yet, going too far down the deficit path could upset the balance between fiscal income and spending, putting the prospect of recovery in jeopardy.

China's deficit may not be as small as some think. Although the country's debt-to-GDP ratio was just 1.4 percent in 2011, lower than the internationally accepted standard of 3 percent, if one considers all of the hidden debts accumulating among the country's local governments, the rate could potentially be much higher.

The author is Yang Guoying, an economic commentator.