China to Issue More Treasury Bonds to Boost National Economy

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

China to Issue More Treasury Bonds to Boost National Economy

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Proper utilization and management of long-term treasury bonds for development will be continued to promote sustained and rapid economic growth, Zeng Peiyan, minister in charge of the State Development Planning Commission, said here Wednesday.

China will continue to implement a proactive fiscal policy and a prudent monetary policy this year and issue 150 billion yuan worth of long-term treasury bonds for development.

"This is necessary to maintain sustained and steady growth of the national economy and to curb deflation," Zeng said in his Report on the Implementation of the 2001 Plan for National Economic and Social Development and on the Draft 2002 Plan for National Economic and Social Development, to the second plenary meeting of the Fifth Session of the Ninth National People's Congress (NPC).

Right now banks have sufficient funds, interest rates are low, market prices are stable and production capacity for major products is fairly large. Conditions are therefore still good for issuing long-term treasury bonds for development, he said.

The important thing is to correctly guide investment orientation, pay close attention to economic performance and social benefits and properly utilize and manage fund from the sale of treasury bonds.

First of all, these funds will be used this year to ensure that such projects still under construction financed by treasury bonds as reinforcement of the dikes on the middle and lower reaches of the Yangtze River, upgrading of power grids in rural areas, and development of urban infrastructure and grain depots directly under the central government are completed and put into operation as soon as possible.

Second, more investment will still be directed to the central and western regions, making sure sufficient funding is allocated for western development projects under construction and launching a number of necessary projects. These include projects to pump natural gas from the west to the east, develop the Sebei Gas Field and the Golmud Airport, transmit electricity from the west to the east from the northern route and build national trunk highways and important sections of inter-provincial highways in the western region.

Third, technological upgrading in existing enterprises will be accelerated. Construction of key projects listed in the plan will be started where appropriate. Investment in education, health, cultural undertakings, public security organs, procuratorial organs, people's courts and judicial organs will be increased.

"We must lose no time in carrying out preliminary work on the project to divert water from the south to the north and start construction of the project as soon as possible," Zeng Peiyan said.

At the same time, the central government will encourage and guide all types of economic entities to invest in infrastructure and public welfare undertakings by improving services, expanding channels and opening up more areas.

"We will make sure the time is right before starting projects, maintain continuous and steady investment growth, ensure an appropriate scale of construction in the next two years and lay a solid foundation for long-term development," Zeng said.

The provincial governor responsibility system will be continued to ensure proper budget arrangements are made for supporting funds and guarantee adequate funding for key projects. Close attention will be paid to project supervision, management of funds will be strict and the quality of projects will be ensured, according to the top planner.

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