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Government plans '05 spending cut

The Chinese government plans to cut its spending in 2005, a further measure aimed at slowing economic growth to a more sustainable pace, a senior official announced. Deputy Finance Minister Lou Jiwei told a conference in Beijing the move would build on the government's preliminary successes at adjusting China's economic growth. The size of the planned cut was not revealed. In the first eight months of 2004, the central government's investment in roads, bridges and other fixed assets rose 4.3% to US$61 billion, according to the National Bureau of Statistics. Including spending by local governments and state-controlled companies, investment jumped 26% to US$225 billion. China's economy is expected to slow to 8.5% growth in 2005 from an estimated 9.3% in 2004, the State Information Center said in a forecast released at the conference.

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