China's government will likely spend the full amount of its planned stimulus in 2010, the finance minister said Sunday, despite improvements in its economy and efforts to control bank lending. Xie said Beijing plans to spend 992.7 billion yuan ($145.3 billion) on public investment in 2010, Xinhua News Agency reported, including 572.2 billion yuan of stimulus funds.
China's stimulus calls for pumping 4 trillion yuan ($586 billion) into the economy in 2009 and 2010 through higher spending on public works and aid to industry. Some 1.18 trillion yuan of that is coming from Beijing and the rest from local governments, state companies and lending by government-owned banks.
Xie's comments add to a string of assurances that official aid will continue, especially to private companies, which missed out on the first year of the stimulus. Most funds last year went to state-owned construction companies and suppliers of steel and cement to build airports and other public works facilities.
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