DATE=1/26/2000
TYPE=CORRESPONDENT REPORT
TITLE=CHINA-SPENDING (L ONLY)
NUMBER=2-258441
BYLINE=ROGER WILKISON
DATELINE=BEIJING
CONTENT=
VOICED AT:
INTRO: China says it plans to continue massive
government spending over the next one or two years to
spur economic growth and consumer demand. VOA
correspondent Roger Wilkison reports China's finance
minister says such a fiscal stimulus is needed to
strengthen the economy, improve infrastructure and
develop China's poor western regions.
TEXT: Chinese Finance Minister Xiang Huaicheng says
the government's high spending over the past two years
has fostered economic growth of more than seven
percent, funded important infrastructure projects and
helped stimulate consumption. Speaking through an
interpreter at a Beijing news conference, Mr. Xiang
says the policy was adopted in response to the Asian
financial crisis and weak consumer demand.
/////INTERPRETER ACTUALITY/////
The implementation of a pro-active fiscal policy in
the past two years has made great achievements. So we
will continue to implement a pro-active fiscal policy
this year.
/////END ACTUALITY/////
Mr. Xiang argues that China needs to continue priming
the pump for a while. But he says he does not
envision using massive government spending as a
permanent policy tool.
/////INTERPRETER ACTUALITY/////
I think that such a policy will be in place in the
coming one or two years. But we don't have to call it
a medium- or long-term policy.We may make a
readjustment in this policy by the time investment,
consumption and exports are restored to a given level.
/////END ACTUALITY/////
The finance minister did not disclose what those
levels are. Consumption has been decreasing for the
past 27 months, and exports and investment were also
on the decline last year in relation to 1998.
China's budget deficit -- the result in large part of
its spending program -- now stands at nearly 22
billion dollars. But Mr. Xiang says Beijing can
afford to continue its spending spree despite the
deficit and the government's heavy reliance on loans
from state banks to fund its projects.
/////INTERPRETER ACTUALITY/////
The scale of the fiscal deficit is not dangerous. So I
should say that to continue to implement a pro-active
fiscal policy is the correct choice, and I do not see
the danger or the risk of continuing such a policy.
/////END ACTUALITY/////
Mr. Xiang says he hopes to keep this year's deficit
lower than last year's. But he says that may be
difficult because China -- for the first time -- will
include interest payments on foreign and domestic
debts in the budget, in accordance with international
standards. The year 2000 budget is to be presented to
China's legislature in March. (SIGNED)
NEB/RW/FC
26-Jan-2000 04:40 AM EDT (26-Jan-2000 0940 UTC)
NNNN
Source: Voice of America
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