Beijing will spend only US$10.3 billion in the third iteration of its economic stimulus package, Reuters reported, citing a report in the Chinese-language Economic Observer. The amount is smaller than many had expected. Last week the China Securities Journal reported that the central government would spend almost twice that amount. An unnamed official from the National Reform and Development Commission (NDRC) quoted in the Economic Observer report said that investment in sectors with “stronger prospects” will be scaled back, without specifying which sectors. The adjustments to the program were rooted in the good results of prior spending, not pressure on government finances, said the official. Premier Wen Jiabao stated earlier this month that the effects of the first two spending tranches have been better than expected.
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