Economy
May 29, 2014
China Push to Step Up Spending Will Have Little Impact on Steel Industry
Written by Sandy Williams
The China Ministry of Finance is urging the government to step up spending to support growth in the Chinese economy. The announcement on May 28 follows a call for action by Premier Li Keqiang to increase development projects, which he considers a panacea for China’s economic woes.
The notice by the Ministry has three key points: 1) all fiscal departments must allocate budget spending to local levels by the end of second quarter. If no progress is made by the end of third quarter, the funds are to be returned for reallocation; (2) fiscal departments must initiate payment quickly to avoid funds from being idled in fiscal accounts; and (3) an improved assessment mechanism by the Minister of Finance will better relate fiscal spending to fiscal budget.
