Central govt to pay 25% of stimulus package

China’s central government will finance 25% of the US$586 billion stimulus package announced to boost the economy and offset a looming economic crisis, the South China Morning Post reported. The rest of the funds for the package will come from provincial authorities, corporate investors and bank loans, said a deputy director with the National Development and Reform Commission. Zhou Xiaoqiang said the majority of the package will go to infrastructure spending. The first wave of the stimulus package will run up to US$17.6 billion and will be designated for agriculture, water conservation projects, rural health and education and the rebuilding of areas affected by the Sichuan earthquake, Zhou said. He added that he hoped the initial investment would attract a further US$58.6 billion in investment from non-government sources.