The Straits Times
Nov 24, 2008 |
China plans new stimulus
BEIJING - CHINA is working on an additional economic stimulus plan to supplement the US$586 billion (S$897.7) billion package announced this month with spending on health care and schools, according to a news report.
The plan under discussion by the Cabinet's planning agency also might call for injecting money into Chinese stock markets to buoy investor confidence, the newspaper Economic Observer said in a weekend report. It said the plan is likely to be considered at a high-level planning meeting in early December.
More social spending might help to achieve the stimulus package's goal of boosting consumer spending by easing the financial concerns of Chinese families, which save heavily to pay for health care, schools and retirement.
Phone calls on Monday to the planning agency, the National Development and Reform Commission, were not answered.
The news report gave no possible price tag for the plan, which would be meant to supplement a package unveiled November 9 that aims to insulate China against a global downturn by boosting domestic spending. It calls for higher spending on construction, tax cuts and aid to farmers and the poor.
The new package would extend health insurance to more of China's poor, guarantee that families could pay for basic medications and increase government contributions to paying hospital and school fees, the Economic Observer said. It gave no other details. -- AP
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