{"id":80725,"date":"2009-12-14T07:12:00","date_gmt":"2009-12-14T12:12:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/get-ready-for-a-epic-stimulus-spending-out-of-china-in-the-final-couple-weeks-of-december-2009-12"},"modified":"2009-12-14T07:12:00","modified_gmt":"2009-12-14T12:12:00","slug":"get-ready-for-epic-stimulus-spending-out-of-china-in-the-final-couple-weeks-of-december","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/80725","title":{"rendered":"Get Ready For Epic Stimulus Spending Out Of China In The Final Couple Weeks Of December"},"content":{"rendered":"

\"zhou<\/p>\n

It’s a common phenomenon in bureacracy. Nobody wants to save anything<\/em>. If your department didn’t use up its allocated budget for the year, then the message your sending to your superiors is that they needn’t allocate so much to you next<\/em> year.<\/p>\n

And so at the end of the year, leftover money becomes like a hot potato that you just have to get rid of.<\/p>\n

So expect mammoth spending out of China this month where various towns and local governments are sitting on a huge pile of unspent stimulus money.<\/p>\n

The Telegraph<\/a>: At the end of November, the Ministry of Finance said that government spending had reached 5.62 trillion yuan, only 74pc of its target of 7.62 trillion yuan for 2009.<\/p>\n

Officials are now concerned that provincial and central government departments will embark on rash attempts to spend the remaining money or face having their budgets cut next year.<\/p>\n

“Compared with last year and with earlier years, the surplus is particularly large this year,” said Yang Zhiyong, a public finance specialist at the Chinese Academy of Social Sciences.<\/p>\n

So 26% of the stimulus remains unspent, and all these various authorities have to spend it.<\/p>\n

Remember to adjust that when you’re coming across data that would be affected by this December’s activity.<\/p>\n

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