STORY: Chinese leaders have agreed to raise the budget deficit to 4% of gross domestic product next year.

The number would be the highest on record.

That’s according to Reuters sources, who also said Beijing will stick to an economic growth target of around 5%.

The new deficit plan compares with an initial target of 3% of GDP for this year.

It is also in line with a “more proactive” fiscal policy outlined by leading officials this month.

The additional one percentage point of GDP in spending amounts to about $179.4 billion.

The sources said more stimulus will be funded through issuing off-budget special bonds.

These targets are usually not announced officially until an annual parliament meeting in March.

And they could still change before the legislative session.

Beijing did not immediately respond to a Reuters request for comment.

The stronger fiscal approach planned for next year forms part of China’s preparations to counter the impact of higher U.S. tariffs.

They are expected to rise upon the return of Donald Trump as U.S. President in January.

Reuters reported last month that government advisers had recommended Beijing not to lower its growth target.

The world’s second-largest economy has struggled this year due to a severe property crisis, high local government debt and weak consumer demand.

Exports have been one of the few bright spots.

But that could soon face U.S. tariffs over 60% if Trump delivers on his campaign pledges.

Analysts believe China is likely to rely heavily on fiscal stimulus next year, but could also use other tools to deal with the impact of tariffs.