China boosts railway spending by US$3.2b

The Ministry of Railways has raised its planned US$97.17 billion railway investment by 3.3%, the third increase this year for 2012 spending, Reuters reported. The US$3.2 billion increase comes as China struggles to buoy growth with several fast-tracked infrastructure projects. The government recently approved what could be worth more than US$111.5 billion on 25 rail projects. This increased investment follows an IMF cut to China’s growth forecast from 8% to 7.8%. Beijing also said it would increase spending and offer tax breaks to quicken developments in public transport systems. China’s rail investment slowed greatly in 2011 after a fatal high-speed train wreck.