China to boost spending for Covid-19 prevention, treatment
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China has seen a surge in Covid-19 infections after stringent antivirus curbs were abruptly removed last month.
PHOTO: REUTERS
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BEIJING - China’s finance ministry said on Monday it will boost funding for Covid-19 prevention and control, urging local fiscal departments to step up transfer payments to rural and poor areas.
The world’s second-largest economy has seen a surge in Covid-19 infections after Beijing abruptly removed stringent antivirus curbs last month. Authorities said on Saturday nearly 60,000 people with Covid-19 have died in hospitals
The funding should be mainly used for treatment, temporary work allowance for medical staff, vaccinations and improving medical treatment capabilities, the ministry said in a statement.
China will also support the use of local government bonds and the issuance of special local government bonds for building qualified health care projects, in a bid to meet the needs of public medical treatment, it said.
Resource coordination of first-aid in the countryside should be done well, and medical treatment of patients with severe conditions must also be prepared, the statement added.
The country will set up “green channels” for the government, which will facilitate the purchase of medical supplies.
In 2022, declining state land sales revenue amid an ongoing crackdown on debt in the sector severely eroded local governments’ financial power - a situation exacerbated also by China’s feeble growth, weak tax income and crippling Covid-19 restrictions.
Gross domestic product (GDP) likely grew just 2.8 per cent in 2022 as lockdowns weighed on activity and confidence, according to a Reuters poll, slower than a 3.2 per cent rise seen in October’s forecast and braking sharply from 8.4 per cent growth in 2021.
The government is due to release the GDP data, along with December activity data, on Tuesday. REUTERS
