Stimulus Package Focuses on Citizens' Livelihood and Economic Restructuring

By staff reporter Liu Qiong

On March 6 Zhang Ping, director of the National Development and Reform Commission, gave more details on China's RMB 4-trillion economic stimulus package.  

Speaking at the NPC conference, Zhang said the amount will come from the state budge, local governments and public investment as well, with the share from the central government scheduled at RMB 1.18 trillion. To give an example of this joint funding, he said that for educational projects in the state program the central government will make two thirds of the investment, while local governments shoulder the rest. 

The RMB 4 trillion will be split among six aspects:  

RMB 400 billion goes to projects concerning urban residents’ livelihood, such as construction of affordable homes and renovation of shanty areas;

RMB 370 billion goes to projects concerning rural residents’ livelihood, such as construction of road, water, electricity and gas supply facilities, renovation of unsafe homes and building permanent settlement for nomadic herders;

RMB 1.5 trillion goes to infrastructure construction, such as railway, highway, airport and water control projects;

RMB 210 billion goes to energy saving and ecological projects;

RMB 150 billion goes to public work, such as education, public health, culture and birth control;

RMB 1 trillion goes to reconstruction of earthquake-hit areas in Sichuan Province.  

Measures will be taken to make sure the money is well spent, including explicit division of responsibilities between the central and local governments and enterprises, and strict censorship and supervision of investment projects. The state has set up 24 inspection panels headed by the CPC Central Commission for Discipline Inspection and the Ministry of Supervision. Their members are from organs including National Development and Reform Commission, Ministry of Finance and National Audit Office.