Follow us on:   

China to spend $19bn on infrastructure
February 12, 2013, 8:24 am

[Getty Images]

Large construction projects worth about a trillion yuan were approved last year. [Getty Images]

The Chinese government plans to allocate 120 billion yuan ($19.11 billion) to fund local transport infrastructure construction in 2013, announces the ministry of finance.

The government approved the spending package on roads and infrastructure projects, joining the country’s regions in a wave of stimulus to strengthen the slowing economy.

According to the budget target set by the central government, the fund will be allocated from vehicle purchase tax incomes and mainly used to improve highway networks of trunk lines and rural roads.

Chinese authorities have given the go-ahead to infrastructure projects to boost infrastructure investment over the past few months.

They approved massive construction projects worth about a trillion yuan in the second half of last year.

A global slowdown and the eurozone crisis has hurt the world’s second-largest economy, which last year saw growth drop below 8 per cent for the first time since 1999.

Source: Agencies