Govt's deep pockets

A huge fiscal surplus can leave the Chinese government ample leeway to preempt a post-Olympic economic slowdown experienced by many other host nations.

Yet, it is more important that the government should make better use of its growing financial muscle to improve people's living standards.

With China's fiscal surplus hitting 1.19 trillion yuan ($174 billion) in the first half of the year, the government is well prepared to boost fiscal spending to stimulate investment and thus keep the country's fast economic growth on track.