BEIJING, Oct. 25 -- Flood prevention and disaster relief are top priorities in China's issuance of the additional 1-trillion-yuan (about 139.3 billion U.S. dollars) government bonds, an official said on Wednesday.
The Haihe River, Songhua River basins and other regions in northern China have been identified as areas in which the government bonds will be used to systemically promote the management of major flood-control projects, Luo Guosan, an official with the National Development and Reform Commission, told a press conference.
These projects include main-stream flood-control projects of major rivers and lakes, large and medium-sized reservoirs and flood storage and retention zones, according to Luo.
On top of accelerating the progress of major projects, Luo said government bonds will be leveraged to strengthen disaster control of medium-sized and small rivers and mountain torrents, while enhancing the drainage capacity of key areas.
The bonds will also be used to support the building and reconstruction of the irrigation area, as well as the management of soil erosion, with the aim of improving China's grain production and its capacity to respond to droughts, Luo said.
The National People's Congress Standing Committee on Tuesday passed a decision to approve the State Council to issue additional government bonds and adjust the 2023 central budget plan.
Although the issuance will widen the country's 2023 budget deficit ratio from 3 percent to around 3.8 percent, "China's budget deficit ratio is still kept within a reasonable range and the risks are generally controllable," said Zhu Zhongming, vice minister of finance.
The injection and utilization of government bond funds will drive up domestic demand and further cement the recovery momentum of Chinese economy, according to Zhu.
