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Premier Zhu Rongji announced Tuesday the government will issue 150 billion yuan of treasury bonds this year, for "maintaining the necessary level of investment from treasury bonds to stimulate a relatively rapid growth of fixed-asset investment."
Zhu made this announcement at the opening of the annual session of the National People's Congress (NPC), the parliament.
"In light of needs and possibilities, we plan to issue 150 billion yuan of long-term treasury bonds for construction in 2002," he said.
According to the premier, funds to be raised will be used mainly for treasury bond-financed projects under construction, development projects in the western region, technological transformation of key enterprises, water diversion from the south to the north, water resource conservation in Beijing and Tianjin, rural infrastructure, facilities for procuratorial, judicial and public security organs, and facilities for universities and colleges that will increase their enrollments.
Work on most of the projects financed by treasury bonds and launched since 1998 must be basically completed this year, he stressed.
Zhu said that at present, people's savings deposits have increased considerably; banks have sufficient funds; interest rates are low; market prices are stable; and the ratio of national debts to GDP is still within safe limits. There is still room for issuing more long-term treasury bonds for construction without incurring great risks, he noted.
The investment of treasury bonds in construction of major projects and projects urgently needed by society will not only help stimulate economic growth and expand new sources of revenue, but also help pool resources of all sides for accomplishing large undertakings and improve the results of all investments, he said.
While expanding investments from treasury bonds, measures should be taken to utilize funds from other domestic sources effectively and to direct and encourage investments from all sectors of society, the premier said.
He called for great attention to utilizing funds rationally and economically and resolutely prevent ineffective input and redundant construction.
"In infrastructure development, we also need to plan rationally, do everything according to our financial capabilities, stress economic results, and avoid inappropriately high standard construction," he said.
China will continue to tighten supervision and management over the use of capital from treasury bonds, the construction of projects and the quality of engineering and to investigate and severely deal with any act of withholding or misappropriating these funds.
(People's Daily March 5, 2002)
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