2009 public investment may exceed budget
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China's 2009 public investment expenditure may go beyond its 908 billion yuan (62.02 billion U.S. dollars) budget, the Ministry of Finance said Thursday.
Increased spending on affordable housing, energy conservation and emissions cuts as well as technology innovation led to the possible over budget, said Zhang Shaochun, vice minister of finance, at a press conference.
Up until the end of November, 862.6 billion yuan has already been allocated, accounting for 95 percent of the 2009 budget, said the minister.
China last year unveiled a four-trillion-yuan stimulus package to boost domestic spending amid the global financial turmoil.
Altogether 1.18 trillion yuan of newly-added investment in the package is from central budget, which was planned to be used up over the next two years, with 104 billion yuan for the fourth quarter of last year, 487.5 billion yuan for this year, and 588.5 billion yuan for next year, Zhang told the press.
The 487.5 billion yuan planned to spend this year according to the package may also be exceeded, according to Zhang, but he did not explain the extra spending.
The government has pledged affordable homes for people with low incomes. Around 7.5 million affordable houses will be built in the cities, and 2.4 million in the forest districts, reclamation areas, and coal-mining regions by the end of 2011. This year, 2.6 million urban and 800,000 rural homes would be built. Another 800,000 rural homes in poor condition would be renovated.
