SteelOrbis Shanghai
Minister of China's National Development and Reform Commission (NDRC), Zhang Ping, has made public the breakdown of China's economic stimulus plan worth a total of RMB 4 trillion.
According to Minister Zhang, RMB 100 billion from central government funds was designated in the fourth quarter of this year to expand domestic demand and thereby boost the growth of the economy within as short a delay as possible. So far, most of the RMB 100 billion has been assigned to various projects.
The breakdown of China's RMB 4 trillion stimulus plan is as follows:
RMB 280 billion ($41 billion) designated for housing projects
RMB 370 billion ($54.2 billion) to improve living standards and infrastructure in rural areas
RMB 1.8 trillion ($261.4 billion) to build highways, railroads, airports and to build up the power supply grid
RMB 40 billion ($5.9 billion) for medical care and education
RMB 350 billion ($51.2 billion) for ecological and environmental projects
RMB 160 billion ($23.4 billion) to fund R&D and innovation projects
RMB 1 trillion ($146.4 billion) for the areas worst hit by earthquakes
Minister Zhang stressed that an expansion of the rate of investment at the current time can speed up the pace of construction in the country. Taking low-rent housing construction as an example, Zhang said that while an investment of RMB 2 billion ($300 million) was originally scheduled by the central government, in the fourth quarter this figure was increased to RMB 7.5 billion ($1.1 billion). With new investments, new projects are to initiated in addition to previously-scheduled low-rent housing construction.