| China unveils massive stimulus plan amid global crisis |
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| Friday,March 06,2009 Posted: 21:59 BJT(59 GMT) xinhuanet |
China's economy cooled to a seven-year low of 9 percent last year, and broke a five-year streak of double-digit expansion, as the global financial crisis took its toll on the world's fastest growing economy.
In a work report to the National People's Congress (NPC), the country's parliament, Premier Wen Jiabao Thursday outlined an aggressive stimulus package, including huge government investment, tax reform, industrial restructuring, scientific innovation, social welfare and promoting employment.
In addition to a 4-trillion yuan (585.5 billion U.S. dollars) stimulus package that was announced in November, the premier also proposed a budgeted fiscal deficit of 950 billion yuan (139 billion U.S. dollars) for 2009, a record high in six decades and nearly three times over the last record of 319.8 billion yuan set in 2003.
The deficit accounted for less than 3 percent of the gross domestic product (GDP), nearly surpassing an internationally accepted risky line.
Wen said increasing government spending is the most active, direct and efficient way to expand domestic demand, while economists believe China's 2-trillion U.S. dollar foreign reserves, current-account surplus and budget surplus offers the government lots of room to do so.
Other key economic and social targets included creating more than 9 million jobs in the city, controlling urban registered unemployment rate under 4.6 percent and keeping the rise of Consumer Price Index (CPI) at about 4 percent.
China will be able to achieve the economic growth target of about 8 percent in 2009, if proper policies and measures are taken, said Premier Wen Jiabao.
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