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China / Government

250b yuan ordered redirected

By Li Xiaokun and Chen Mengwei (China Daily) Updated: 2015-07-09 07:48

Money being wasted must be put to better use, State Council rules

China will redirect more than 250 billion yuan ($40.3 billion) of fiscal appropriations reclaimed due to inefficient or illegal use to projects that urgently need money, the State Council decided on Wednesday.

The information was released during the State Council's weekly executive meeting, presided over by Premier Li Keqiang.

A news release of the meeting also said more positive factors have emerged in the Chinese economy over the past two months.

The remarks can be seen as a favorable signal of second-quarter data, which the National Bureau of Statistics plans to publish on July 15.

"The pace of structural adjustment has accelerated, while the fiscal and monetary policies have been effective," the meeting notes said.

"The development momentum and capability to handle risks have grown. We have the confidence and conditions to fulfill major targets of this year's economic and social development."

Li said last week in France that China can achieve its annual growth target of about 7 percent.

On Monday, he told overseas Chinese commercial leaders that major economic indicators have stabilized.

On the same day, the NBS said economic indicators in recent months suggested the economy has passed the worst period.

The executive meeting on Wednesday urged government bodies to implement "key policies, reforms and projects" well to ensure the economy runs properly.

Local governments were urged to speed up construction of railways, rural highways and major water conservancy projects and ensure their annual targets are met. Special bonds and other market-oriented ways to raise capital will be used to support China's production capacity cooperation with other countries.

Corresponding officials who "apparently did not perform their duties or did not do enough in corrective and remedial measures" must be held accountable, the meeting notes said.

"Local officials will definitely pay more attention to the job of implementation as they found it was stressed at the top-level executive meeting," said Mao Shoulong, a professor of public policy at Renmin University of China. "The premier and ministers are closely watching them, and more executive resources are mobilized,"

The meeting also decided that the government will pay all interest from college student loans before the student borrowers graduate, while the longest loan maturity will be raised from 14 to 20 years.

The application process will also be simplified. Graduates working in grassroots units in poor and remote areas will be able to apply for provincial financial departments to pay the loans.

"This is a very generous policy," said Cheng Yuzhui, a professor from the Department of Chinese Language and Literature at Peking University.

Contact the writers through lixiaokun@chinadaily.com.cn

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