Posted on 04/22/2002 6:21:13 PM PDT by maui_hawaii
WASHINGTON -(Dow Jones)- China 's Finance Minister Xiang Huaicheng Monday said he wants to pull back from expanionary fiscal policy by curbing the issuance of special treasury bonds.
"I would like to withdraw from this policy gradually. Expansionary fiscal policies can only last for the short term," Xiang told the School of Advanced International Studies at.
"I want to have outstanding debt reduced on a gradual basis...it cannot be done in one year," he said.
China has issued 511 billion yuan in special treasury bonds over the past four years which have added between 1.5 and two percentage points to economic growth in each of those four years.
Xiang said China 's public spending had been "reckless" with revenue growth far outstripped by expenditures in the first quarter of 2002.
He said this should improve soon: "after April the situation will look up and it will be better on a month-on-month basis."
He cited an anticipated U.S. economic recovery and reforms to China 's tax system for the expected improvement. In the first quarter of 2002 revenues grew just 3.4% on year versus expenditure growth of 24%.
Turning to the broader economy, Xiang said "there are some slight deflationary pressures but I'm worried almost every day about the inflation figures. We have to be very concerned about that."
The last thing they need is an ERON reputation... investors aren't kidding around anymore...
Believe it or not, I am going to lay a little praise for the transparency here...at least it has the right sound to it...
China has issued 511 billion yuan in special treasury bonds over the past four years which have added between 1.5 and two percentage points to economic growth in each of those four years.
The real question is, the other %... whatever it really was... where did the funds for that come from?
Let me tell you...
a) CCP industries who profit from trade or whatever...the collective is the money pot for building cel phone infrastructures and internet backbones... b) tax revenues...
The whole notion of 'private' in China is misleading...52% owned by the CCP and 48% owned by 'shareholders' is considered 'private'...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.