Editorial | China’s austerity is very different to that in US
Beijing is targeting wasteful spending on projects and misuse of public money by officials, not savings to finance tax cuts
The central government has raised deficit spending to 4 per cent of gross domestic product. At the same time it has doubled down on a continuing campaign against waste.
This has prompted comparisons with Washington’s version of austerity, with drastic cuts to the civil service and public spending to finance promised tax cuts, without adding to ballooning national debt.
State media said this week the campaign against wasteful spending launched by President Xi Jinping in 2012 set iron rules for the long term, not just five or 10 years. Beijing has revealed more details of austerity measures, with scores of new regulations.
The campaign is not only aimed at wasteful spending on unnecessary projects and hires, but also at officials who misuse public money for their own benefit, such as lavish banquets and luxury overnight accommodation for business trips, instead of government guest houses.
The rules even name 21 popular visitor attractions that are now off limits to party and government meetings.
China’s leadership is concerned enough to ensure that money raised to stimulate stable growth amid uncertain external conditions really finds its way to areas where it is needed.