MOR raises spending to support slowing economy

The Ministry of Railways (MOR) will issue 25 billion yuan ($4 billion) worth of bonds Friday, raising its planned railway investment to 630 billion yuan for 2012, an increase for the third time this year as part of efforts to support the slowing economy.

The revised spending plan would be 3.3 percent higher than an initial 610 billion yuan tally announced last month, according to a bond prospectus published on www.chinabond.com.cn.

The increase comes as the central government tries to shield the world's second largest economy from stiff global headwinds, including fast-tracking some infrastructure projects.

The National Development and Reform has recently approved 25 rail projects that could be worth more than 700 billion yuan, as part of measures to stimulate the economy.

The MOR said in September it would boost spending by 30 billion yuan to 610 billion yuan this year, after it raised its target by 12.4 percent in July.

The State Council said Wednesday it would increase State spending and offer tax breaks to quicken the development of the country's urban public transport system.