The Chinese government will spend 1 trillion yuan ($ 140 billion) to overcome the economic challenges caused by the Covid-19 pandemic. This includes the fight against reduced consumer demand, foreign investment outflow, export reduction and a crisis in the real estate market. The highest planning body of China has determined the second stage of use of more than 800 billion yuan from this amount for state financing of economic recovery.
It is noted that this money will be used to produce bonds, including those aimed at combating floods and overcoming the consequences of natural disasters. The National Development and Reform Commission (NDRC) has already selected 9,600 projects totaling more than 560 billion yuan.
The implementation of these projects will help improve the flood control system in China, the mechanism of emergency response and the ability to assist in the case of natural disasters, which is critical. It is noted that the additional issue of bonds per 1 trillion yuan will increase China's budget deficit in 2023 from 3% to about 3.8%.
