BEIJING has restated its determination to continue the austerity drive and has warned local authorities to strictly control spending on fixed assets.
Inspection teams have been sent to Hebei, Jiangsu, Zhejiang, Henan, Guangdong, Guangxi, Beijing and Shanghai to check the accounts of local governments and state-owned units, the semi-official China News Service reported.
Other provinces and cities were required to do 'self inspections' and report to the Government by the end of this month.
The State Council's order reiterated that only small projects covering agriculture, irrigation, environmental protection and ordinary housing were to be allowed.
The latest campaign, led by the State Planning Commission, is backed by central government agencies like the State Economic and Trade Commission, the Ministry of Finance, the People's Bank of China and the Auditing Administration. Citing figures provided by the State Planning Commission, the service reported that although the data showed a slowdown on fixed-asset investment in the first half of this year, the situation remained grim.
Beijing has blamed runaway prices on uncontrolled spending on fixed assets such as 'high-class office blocks and luxury villas' by local governments and state-owned units.
The official inflation target this year is 15 per cent.
