Avoid fiscal risks of fixed-asset investment

The fixed-asset investment in 23 provinces, municipalities and autonomous regions (excluding agricultural households) is expected to increase to more than 45 trillion yuan ($6.52 trillion) in 2017, raising public concerns.

Some people have even inappropriately compared the fixed-asset investment with the 4 trillion yuan stimulation package in 2008. The fact is, the government had allocated 4 trillion yuan as extra investment to offset the impact of the global financial crisis and stimulate the economy, and the amount was far less than the total social fixed-asset investment. For example, China's annual social overall fixed-asset investment reached 45 trillion yuan in 2013, rising to 50 trillion yuan in 2014, 56 trillion yuan in 2015 and about 60 trillion yuan last year.

Based on last year's growth rate of fixed-asset investment, the overall amount for this year is expected to be about 65 trillion yuan. Thus the 45 trillion yuan fixed-asset investment of the 23 provinces, municipalities and autonomous regions is in accordance with the growth tendency of such investment in recent years.