Local govts issue vouchers to boost consumption

As the Spring Festival approaches, many local governments have stepped up their efforts to boost consumption by issuing vouchers and launching a range of promotion activities, Securities Daily reported on Wednesday.

Such efforts were encouraged by the Ministry of Commerce, which worked with relevant local departments to prioritize economic recovery and boost consumption by fine-tuning the implementation of policies and initiatives, according to the ministry's spokeswoman Shu Jueting said at the regular press conference on Jan 6.

Shenyang, the capital of Liaoning province, will distribute 100 million yuan ($14.8 million) of Spring Festival consumption coupons from Jan 10 to Feb 28, aiming to encourage sales in automobiles, home appliances and retails.

In Tianjin, the second phase of 115 million yuan of vouchers will be issued from Jan 11 onwards, with four categories of vouchers for automobiles, home appliances, retails and catering sectors.

Beijing's Fangshan district is starting to issue 1 million vouchers to encourage spending in cultural and tourism sectors from Jan 11 until Feb 2.

In Zhejiang province, over 250 special promotions and investment events will be held across the province, and over 1.6 billion yuan of vouchers are expected to be distributed in a bid to spur consumption.

Shanxi province proposed to issue 1,500 yuan consumption vouchers per person for people with special needs.

Henan province will extend its subsidy for purchasing vehicles until the end of March.

Chongqing will issue 12 policies by the end of this month to further increase financial support for consumption and enlarge domestic demand, according to the municipal's press conference on Jan 6.

Encouraging consumption is on the top of the agenda in 2023, said Fu Yifu, a senior researcher from the Star Atlas Institute of Finance.

It is timely that many places across the country are issuing vouchers, which are expected to be more effective in boosting consumption, given that people are more willing to spend during the upcoming Spring Festival, which is traditionally the peak season for consumption, Fu added.

The move has reduced household burdens, injected vitality into the consumption market and enhanced confidence in economic recovery, said Zhang Yiqun, deputy director of the China Special Committee on Budget Performance.