Mon, Nov 08, 2004 - Page 10 News List

China to help its farmers

AFP , BEIJING

The Chinese government will try to cut its huge deficit next year and curb investment financed from public coffers, state media said Sunday, quoting Vice Finance Minister Lou Jiwei (樓繼偉).

The policy next year will strive to curb "excessive development" in overheated industries, while boosting support for farmers, Lou told a seminar in Beijing, according to Xinhua news agency.

The Chinese government has spent most of this year trying to reduce the flow of money into red-hot sectors such as real estate, auto manufacturing and steel, most recently resorting to the first interest rate hike in nine years.

Chinese spending on fixed assets -- a key measure for the country's investment fever -- soared 27.5 percent in the first nine months of the year.

The government expects a budget deficit of US$38.5 billion this year, unchanged from the record deficit last year.

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