China adopts $133 billion spending plan

Chinese Premier Wen Jiabao outlined details for a new $133 billion government spending package Friday, pledging tax reductions and improved salaries for some.

Farmers, retired workers on pension plans and 12 million teachers would see increased incomes from the package, Wen said in a Xinhua, the official Chinese news agency, report Friday.

In addition, we will provide housing to 7.5 million low-income families in three years and provide better shelter for 2.4 million who still live in shantytowns, Wen said.

He said the spending plan wasn’t associated with the $585 billion spending plan passed last fall.

We have proposed a stimulus package only less than half a year after the financial crisis began, he said at a news conference after the closing of the Second Session of the 11th National People’s Congress in Beijing.

To implement the plan, I still believe confidence is still the first and foremost thing, he said.