China's total social investment is predicted to reach 18 trillion yuan (2.64 trillion U.S. dollars) in 2009, the National Development and Reform Committee (NDRC), the country's top economic planner, announced on Thursday.
"China's total social investment exceeded 13 trillion yuan in 2007 and is expected to top 16 trillion yuan this year," said NDRC head Zhang Ping. "The 4 trillion stimulus package is only part of the whole picture."
Zhang said the central stimulus package was roughly divided into seven parts, with 1.8 trillion yuan going towards large-scale infrastructure projects such as railways, roads, airports and the national grid.
Areas most affected by the May 12 earthquake in the southwestern Sichuan Province will get 1 trillion yuan for reconstruction.
The rest of the stimulus money will be spent on affordable housing, rural welfare, infrastructure, medical and cultural development, environmental protection and industrial restructuring.
Next year's total social investment will have the same focus as the central plan, which involves improving living standards and promoting rural development, according to Zhang.
Media reports on Nov. 25 said 24 of China's 33 provinces have issued local investment plans for the next two to five years, with the southern Yunnan Province taking the lead by 3 trillion yuan planned for five years.
The total figure was estimated to climb near 18 trillion yuan, almost equal to the NDRC prediction for next year's social investment, arousing concerns that the "investment rush" could lead to overlapping projects.
While welcoming provincial governments' participation in boosting domestic demand, Zhang said the NDRC would impose a strict review and approval procedure on all projects submitted by local economic planners.
"Only those projects in accordance with the national development plan will be considered," he stressed.
The NDRC will give priority to local construction plans that focus on industrial restructuring, raising living standards and environmental improvement, according to Zhang.
"We will closely examine provincial projects and make sure to stamp out potential duplication," Zhang added.
(Xinhua News Agency November 27, 2008)