China outlines second set of projects in $140 billion spending plan

China’s top planning body said it had identified a second set of public investment projects that include flood control and disaster relief programs as part of a bond and investment plan announced in October to boost the economy.

China has so far allocated more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bonds in the fourth quarter as it focuses on fiscal measures to support its struggling economy.

The National Development and Reform Commission said in a statement on Monday that it had identified 9,600 projects with investments planned to be worth more than 560 billion yuan.

China’s economy, the world’s second-largest, is struggling to regain its position after the COVID-19 pandemic as policymakers face obstacles due to declining consumer demand, exports, foreign investment, and a worsening real estate crisis.

China’s additional issuance of 1 trillion yuan in bonds will increase China’s budget deficit for 2023 to about 3.8% from 3%, “Xinghua” news agency said.