Guangdong to spend $347b in provincial development
The provincial development and reform commission said on Monday that Guangdong, one of the nation’s key economic powerhouses, will spend 2.37 trillion yuan ($347 billion) on 222 items constrained in 10 projects in the coming five years.
Of the total mount, about 1.26 trillion yuan will be used to build expressways, extend railway tracks, refurbish ports and airports, and build power generation plants. 731.2 billion yuan will put to boost the advanced manufacturing and modern service industries which include iron and steel processing plants, refineries and ship building and repairing. About 375 billion yuan will be put aside for developing the public facilities in the city as well as the rural areas.
Li Miaojun, director of the provincial development and reform commission said to Najing Daily On Oct 11 that the massive investment is expected to stimulate the development of a wide range of industries, and even to improve the current bleak economic environment. “Projects that are ready to begin construction are urged to do so as soon as possible, while those that are in agreement with the nation’s industrial policy are encouraged to begin preparatory work as soon as possible,” she said.
Li Qingqing, an associate professor of economics with South China Normal University, said the positive fiscal policy is necessary at the time of economic slowdown. The budget of 346.4 billion yuan for railway projects is expected to create a market demand for building materials in the next five years including iron, steel and cement worth more than 100 billion yuan, and more than 60 billion yuan for the equipment manufacturing industry.
Li added that such investment will improve the infrastructure of the province in a wide range, and that will pave a solid way for future development of Guangdong.
Huang Huahua, governor of Guangdong said in a recent interview with the Xinhua News Agency that the budget is part of the measure to stem further economic slowdown in Guangdong.
To encourage consumption, the province will modify the minimal salary standard, and improve welfare in the rural areas, such as social security, pensions, public facilities and services, etc.
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