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China Explains Economic Stimulus Measures

  • Thursday, December 11, 2008
  • Source:

  • Keywords:economy
[Fellow]
China will try to distribute public resources to areas directly benefiting ordinary people, when carrying out the economic stimulus package announced yesterday.
 
The statement was made Tuesday by the National Development and Reform Commission (NDRC), the nation's top economic planning agency.
 
The government will also try to make sure the 4 trillion yuan (US$586 billion) is being spent correctly over the next two years, the NDRC noted.
 
The agency said priority would be given to projects improving people's livelihood, including those in rural areas, housing projects for low-income earners in urban areas, and social undertakings.
Thanks to the stimulus package, 7.5 billion yuan was added in the fourth quarter to the 2-billion-yuan investment earmarked earlier this year by the central government for low-rent housing projects in urban areas.
 
Meanwhile, infrastructural construction, embracing railroads, highways and water conservancy projects, and biological conservation and environmental protection as well as post-disaster rebuilding, will also be put on top of the development agenda in the coming two years, according to NDRC.
 
To avoid repetitive construction, environmental devastation and redundant production capacities, strict management should be exercised.
 
That includes rigid implementation of industrial and environmental policies, market access criteria, along with policies related to land used for construction, environment assessment, energy conservation and emissions reduction.
 
To prevent jerry-built projects and corruption, supervision should be intensified, accountability should be enforced and transparent and effective operation of related funds should be ensured, according to the NDRC.
 
As for local investment supporting the central government's financial input, the economic planning agency said local projects should be in conformity with the principles of scientific and sustainable development and with the related policies worked out by the central government.
 
Four trillion yuan is equivalent to one third of the nation's total fixed asset investment last year.
Around 280 billion yuan will go to housing projects for low-income earners, about 370 billion yuan to rural infrastructure and projects to improve living standards of rural dwellers, some 40 billion yuan to healthcare, education and cultural undertakings, approximately 350 billion yuan to biological conservation and environmental protection, and 1 trillion yuan for post-disaster reconstruction projects.
 
Besides, 1.8 trillion yuan will be used for building railroads, highways, airports and other transportation infrastructures. Another 160 billion yuan will pay for technical innovation and industrial restructuring. –Xinhua
  • [Editor:editor]

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