The government in China has instructed its officials to reduce spending on alcohol and cigarettes. Along with this, they have also been asked to cut down on spending on travel, food and office spaces. According to China’s Xinhua News Agency, President Xi Jinping has ordered not to serve expensive food, alcohol and cigarettes in the office to reduce government expenditure. Along with this, it has also been asked not to do grand floral decorations in government programs. In the order, officials have been asked to use government resources carefully and strictly prevent wasteful expenditure. In this, wasteful expenditure has been described as shameful and saving is respectable. Shares of liquor manufacturing companies have fallen After the government’s order, shares of liquor manufacturing companies have fallen. On May 19, China suffered the biggest loss in consumer goods stocks. Shares of Queichou Moutai Company (famous Chinese liquor manufacturer) and Luzhou Laojiao Company fell by 2.2% and 2.6%. In China, the profit from the sale of land has decreased and the local government has become heavily indebted. According to a Bloomberg report, China’s local governments have a debt of about 9 trillion US dollars (about Rs 770 lakh crore). Earlier in 2023, President Xi Jinping launched a campaign against corruption and pretense by officials. In which the government had instructed officials to get into the habit of cutting expenses. According to Bloomberg, in 2024, Beijing launched a campaign to reduce the risks associated with the debt of local governments. So that the risk of default is reduced and local governments can help in economic development. New stimulus package and emphasis on consumer spending: ——————- Read this news too… China is building the world’s fifth tallest dam in Pakistan: 700 feet height; Peshawar will be supplied with 300 million gallons of water every day China has announced to speed up the construction of Mohmand Dam in Pakistan, which is an important hydropower and water security project. China has taken this step amid growing tension between India and Pakistan over the Indus Water Treaty. Read full news…
