According to the provincial development and reform commission Guangdong province, one of the nation's key economic powerhouses, will spend CNY 2.37 trillion on 222 items contained in 10 projects in the coming five years.
It is said that about CNY 1.26 trillion will go toward building expressways, extending railway tracks, refurbishing ports and airports, and building power generation plants. A total of CNY 731.2 billion will be used to boost the advanced manufacturing and modern service industries. They include iron and steel processing plants, refineries, and ship building and repairing. About CNY 375 billion will be set aside for the development of public facilities in the cities and rural areas.
Mr Li Miaojun director of the provincial development and reform commission said that "The massive investment in the coming five years is expected to trigger the development of a wide range of industries, and is expected to hold back or even reverse the downtrend in economic development in face of the global financial turmoil and economic slowdown. She said that "Projects that are ready to begin construction are urged to do so as soon as possible, while those that are in agreement with the nation's industrial policy are encouraged to begin preparatory work as soon as possible."
Ms Li Qingqing, an associate professor of economics with South China Normal University said that the proactive fiscal policy was necessary at a time when the world is witnessing an economic slowdown and the province's foreign oriented economy is facing a very bleak winter.
Ms Li said that the budget of CNY 346.4 billion for railway projects in the next five years is expected to create a market demand for building materials including iron, steel and cement worth more CNY 100 billion and for the equipment manufacturing industry more than CNY 60 billion. She said that "What's more important, the investments will improve the province's infrastructure enormously, like transportation and energy supply. And that will lay an even more solid foundation for the future development of Guangdong."
Mr Huang Huahua, governor of Guangdong said that the budget is part of the province's measures to arrest the further slowdown of its economy.
The province will also encourage people to spend more money by modifying the minimal salary standard, improving social security, pensions, and public facilities and services in the rural areas.
Editor: canton fair