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Gov't Orders 20% Cut in Car-buying Budget

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Chinese Premier Wen Jiabao announced on Tuesday a crackdown on government "hospitality" budgets, including a 15 percent cut in car-buying and fuel funds.

Wen said the government should take the leading role in promoting frugality and should ensure government spending goes where it is most needed amid the economic crisis.

Wen ordered an across-the-board halt to the building of any new office compounds before the end of 2010, or any glitzy buildings in the names of training centers, hotels, or government motels.

The meeting was attended by top officials from ministries under the State Council, or the Cabinet, government-owned organizations, and financial institutions.

They agreed to strictly control the government's "hospitality" money used for receiving guests, the car-buying and fuel budgets, and officials' overseas tours using public money.

The meeting ordered that for 2009 "hospitality" money should be reduced by 10 percent compared to 2008; a cut of 15 percent and 20 percent respectively in the government's car-buying and fuel budgets, and in the officials' overseas tours budgets compared to the average spending of the past three years.

They agreed to avoid the random giving or abuse of government allowances, money awards given to people who have made big contributions to the country in fields such as science and technology, education and health.

Spending on occasions such as meetings and ceremonies by the government should also be reduced, they agreed.

(Xinhua News Agency March 25, 2009)

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