According to the website of the National Development and Reform Commission (NDRC), the arrangement of projects regarding China's 4 trillion yuan investment for further boosting domestic demand and fueling economic growth has undergone necessary adjustments based on preliminary considerations raised in the fourth quarter of last year.
Reporters learned that in the fourth quarter of last year, in order to effectively deal with the impact of the international financial crisis and maintain steady and relatively fast economic development, the central government adopted 10 measures to further expand domestic demand and stimulate economic growth. The central government also designated key areas and the orientation for expansion in investment, which mainly include: acceleration of welfare housing projects, projects related to people's livelihoods in rural areas, infrastructure, social undertakings, environmental protection, independent innovation and structural adjustment as well as recovery and reconstruction of disaster-stricken areas. To accelerate development in these key areas, from the fourth quarter of 2008 to the end of 2010, the central government has planned to invest an additional 1.18 trillion yuan. Coupled with investment from local governments as well as with non-governmental investment, the total scale of investment will be about 4 trillion yuan.
All of the 4 trillion yuan will be invested in key areas and vulnerable sectors in the national economy and in social development. The central government emphasizes that it will avoid making blind investments and low-level redundant projects and will prevent investment from pouring into projects with high-energy consumption, high-pollution emissions and high-resource requirements. According to the requirements of the adjustment and stimulus plans for 10 major industries approved recently by the State Council, necessary adjustments have been made to the projects in the 4 trillion yuan investment package based on preliminary considerations raised in the fourth quarter of last year.
The key areas for the 4 trillion yuan investment are: (1) around 400 billion yuan investment in government-subsidized housing construction including low-rent housing and shanty town renovation; (2) around 370 billion yuan investment in construction of projects that are related to people's livelihoods and infrastructure facilities in rural areas such as drinking water, power supply, roads, bio-gas facilities and comfortable rural housing projects; (3) around 1.5 trillion yuan investment in the construction of major infrastructure including railways, highways, airports and water conservancy projects, and in urban power grid renovation; (4) around 150 billion yuan investment in social undertakings including the medical care and public health, education and cultural sectors; (5) around 210 billion yuan investment in the construction of energy conservancy, emission reduction and ecological projects; (6) around 370 billion yuan investment in independent innovation, structural adjustment and technical innovation projects; and (7) around 1 trillion yuan investment in post-quake recovery and reconstruction.
By People's Daily Online