China to increase spending to fight COVID
2023.01.16 08:15
China to increase spending to fight COVID
By Kristina Sobol
Budrigannews.com – In a statement, the finance ministry of China said on Monday that it will increase funding for COVID-19 prevention and control and urged local fiscal departments to increase transfer payments to rural and poor areas.
After Beijing abruptly lifted strict anti-virus restrictions last month, the world’s second-largest economy has seen an increase in COVID infections. Between December 8 and January 12, nearly 60,000 COVID patients died in hospitals, according to authorities on Saturday.
According to the statement, the funds should primarily be used for treatment, vaccinations, temporary work allowance for medical staff, and improving medical treatment capabilities.
In an effort to meet the requirements for public medical treatment, it stated that China will also support the use of local government bonds and the issuance of special local government bonds for the construction of qualified health care projects.
The statement added that proper resource coordination for first aid in the countryside is required, as is preparation for medical treatment for patients with severe conditions.
According to the declaration, the nation will establish “green channels” for the government to facilitate the purchase of medical supplies and pledge that “COVID prevention and control must not be affected by funding issues.”
Local governments’ financial power was severely diminished in 2022 as a result of falling state land sales revenue, an ongoing debt reduction campaign, and China’s weak growth, low tax revenue, and crippling COVID restrictions.
According to a Reuters poll, GDP growth in 2022 is likely to be just 2.8% due to lockdowns affecting activity and confidence. This is lower than the forecast of 3.2% and a sharp drop from 8.4% growth in 2021.
On Tuesday, at 2:00 p.m. GMT, the GDP and December activity data are scheduled to be made available by the government.
