Xinhuanet

China to roll out trillion-yuan fiscal stimulus: report

English.news.cn 2015-09-11 11:49:21

BEIJING, Sept. 11 (Xinhua) -- China is considering more than 1 trillion yuan in fiscal stimulus over the next three years, according to a latest report from the China International Capital Corporation (CICC).

A total of 1.2 trillion yuan (188 billion U.S. dollars) to 1.5 trillion yuan may be taken from the government coffers to replenish the capital for investment projects, mainly those already approved by the authorities, the investment bank estimated.

The stimulus is likely to drive a total potential investment of 5 trillion yuan to 7 trillion yuan in the next three years, or 2.5 percent to 3.4 percent of the 2015 GDP each year, it said.

Investment projects will be funded by not only policy banks but also commercial lenders and private investors via the public-private partnership.

The report came after the Ministry of Finance put forward multiple fiscal policies aimed at stabilizing growth on Tuesday, such as coordinating funds to accelerate project construction, activating idle money and widening tax breaks.

The move indicated that China's fiscal policy will be "firing on all cylinders to support growth", the CICC said.

China is battling a property downturn, industrial overcapacity, sluggish demand and struggling exports, which dropped growth to 7 percent for the first half of the year.

Fiscal policy has moved to center stage in growth stabilization, as the room for monetary loosening became more constrained after several interest rate cuts and fiscal deposits continued to increase, according to the CICC.

[Editor: huaxia]
 
China to roll out trillion-yuan fiscal stimulus: report
                 English.news.cn | 2015-09-11 11:49:21 | Editor: huaxia

BEIJING, Sept. 11 (Xinhua) -- China is considering more than 1 trillion yuan in fiscal stimulus over the next three years, according to a latest report from the China International Capital Corporation (CICC).

A total of 1.2 trillion yuan (188 billion U.S. dollars) to 1.5 trillion yuan may be taken from the government coffers to replenish the capital for investment projects, mainly those already approved by the authorities, the investment bank estimated.

The stimulus is likely to drive a total potential investment of 5 trillion yuan to 7 trillion yuan in the next three years, or 2.5 percent to 3.4 percent of the 2015 GDP each year, it said.

Investment projects will be funded by not only policy banks but also commercial lenders and private investors via the public-private partnership.

The report came after the Ministry of Finance put forward multiple fiscal policies aimed at stabilizing growth on Tuesday, such as coordinating funds to accelerate project construction, activating idle money and widening tax breaks.

The move indicated that China's fiscal policy will be "firing on all cylinders to support growth", the CICC said.

China is battling a property downturn, industrial overcapacity, sluggish demand and struggling exports, which dropped growth to 7 percent for the first half of the year.

Fiscal policy has moved to center stage in growth stabilization, as the room for monetary loosening became more constrained after several interest rate cuts and fiscal deposits continued to increase, according to the CICC.

分享
News Analysis: Fiscal stimulus to assume bigger growth-supportive role
Fiscal, tax system reform essential in China's medium-term plan: economists
China's fiscal expenditure jumps 24.1 pct in July
Over 2,200 investigated for fiscal violations in China
China's proactive fiscal policy gains steam
Chinese, Mongolian police hold joint anti-terror drill
Chinese, Mongolian police hold joint anti-terror drill
Artillery force holds drill in deserts of NW China
Artillery force holds drill in deserts of NW China
2nd China-Arab States Expo kicks off in China's Yinchuan
2nd China-Arab States Expo kicks off in China's Yinchuan
AC312 helicopter performs at Tianjin Int'l Helicopter Exhibition
AC312 helicopter performs at Tianjin Int'l Helicopter Exhibition
New human ancestor found in Africa
New human ancestor found in Africa
Singaporeans vote in general election
Singaporeans vote in general election
UN approves raising Palestinian flag at headquarters
UN approves raising Palestinian flag at headquarters
Zimbabwe needs comprehensive economic reform program: IMF
Zimbabwe needs comprehensive economic reform program: IMF
Back to Top Close
010020070750000000000000011100001346143451