According to statistics recently issued by Ministry of Finance of China, Chinese nationwide governmental purchasing cost 292.76 billion yuan in 2005, 38.02 billion yuan less than expected but increasing by 37.1% compared with that in the year before. The costs make up 1.6 % of national gross domestic product (GDP) in 2005, nearly equal to the percentage of GDP in 2004. During the 7 years since Chinese governmental purchasing reform was launched, expenditures on Chinese governmental purchasing increased by 77.9% on average every year.

In 2005, expenditures on Chinese governmental purchasing for projects and services soared. The governmental purchasing for projects cost 132.32 billion yuan, accounting for 45.2% of total expenditures and climbing by 39.5% compared with the year 2004. 19.58 billion yuan was spent on purchasing for services, making up 6.7% of the total expenditure and up 41.4%. Besides, Chinese central government��s expenditures on governmental purchasing have been growing fast in 2005, with 40.78 billion yuan and increasing by 39.2%.

By People's Daily Online