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Effective investment seen as key to China growth

Tan KW
Publish date: Fri, 24 Mar 2023, 10:06 AM
Tan KW
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BEIJING: Government investment in infrastructure will be more effective this year and is expected to inject more impetus into projects that play key roles in supporting livelihoods and remote areas nationwide, experts say.

The comment came after the Finance Ministry recently announced the nation’s fiscal data for the first two months of this year.

China’s fiscal revenue dropped 1.2% year-on-year (y-o-y) in the first two months, while its fiscal spending expanded 7% y-o-y, the ministry said.

Combined spending on four infrastructure-related sectors - agriculture, forestry and water affairs; energy conservation and environmental protection; urban and rural community affairs; and transportation - rose 3.1% y-o-y during the period.

It’s a figure higher than that in December but relatively lower compared to the overall growth rate of 7%, Zhong Zhengsheng, chief economist at Ping An Securities, said in a note to the China Chief Economist Forum.

“Due to support, including the issuance of special bonds and use of financial tools serving development and policies, the pressure weighing on infrastructure nationwide has been eased, leading to less fiscal spending to this end,” Zhong said.

Surges of spending in areas related to people’s livelihood unveiled the main direction for fiscal spending this year, he added.

Accelerated progress has been seen in many projects nationwide recently, especially those related to livelihoods, and the ones which are expected to generate long-term benefits.

China Railway 24th Bureau Group Corp Ltd (CR24), a unit of state-owned enterprise China Railway Construction Corp, said its team working on the metro project in Hefei, Anhui province, has recently completed a breakthrough ahead of schedule, with the tunnelling work for the right-side rail between the Science Avenue Station and Huaining Road Station completed.

With a length of 1.66 km, the tunnel is the latest milestone achieved on Hefei Metro Line 6 - a key urban rail project in the provincial capital, CR24 said.

The rail, which has a maximum designated speed of 100 km per hour, aims to facilitate urban trips in the city and bring convenience to residents as the line is linked to the local railway station, it added.

 - China Daily

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