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No need for new stimulus plan in China: advisor

By (Xinhua)
Updated: 2009-03-07 09:40

China currently doesn't need another stimulus plan several times as large as the 4 trillion-yuan ($586 billion) package announced in November 2008, said former chief statistician Li Deshui Friday.

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Some media's speculation on a "new stimulus package" as large as 8 trillion yuan or 10 trillion was "market hearsay" and the government has never made any mention of that, Li told a press conference on the sidelines of the annual session of the National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body.

"Considering China's current situation, there's no need for such big investment," said Li. "The present arrangement is proper and reasonable."

He explained that unlike European countries and the United States, China's financial sector remains in good condition and the country's stimulus measures are aimed at boosting growth instead of bailing out ailing banks.

To achieve a growth target of about 8 percent year on year in 2009, China announced Thursday a budgeted fiscal deficit of 950 billion yuan this year, a record high in six decades, resulting from slower revenue growth and planned massive spending.
 
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