On procurement in 2005 China's governments at all levels spent
292.76 billion yuan (US$36.6 billion) which is a year on year
increase of 37.1 percent, according to figures released Wednesday
by the Ministry of Finance.
The ministry said the value of the country's government
procurement in 2005 accounted for 1.6 percent of the gross domestic
product (GDP) which was almost the same as 2004. The proportion of
government procurement to GDP in developed countries averages 10 to
15 percent.
The value of government procurement has been growing at an
annual average rate of 77.9 percent since 1999, the year the
Government Procurement Law came into effect.
Government spending on engineering projects and service
industries increased to 132 billion yuan (US$16.5 billion) and 19
billion yuan (US$2.4 billion) respectively, with the former making
up 45.2 percent and the latter 6.7 percent of the total volume.
China aims to use government procurement to spur economic growth
in less developed areas and small and medium-size enterprises. It
also plans to spend more on procuring environmental protection.
The ministry said China's governments are likely to spend up to
300 billion yuan (US$37.5 billion) on government procurement in
2006 which is up 5 billion yuan (US$621 million) from last
year.
(Xinhua News Agency August 11, 2006)