China ramps up social spending

Premier Wen Jiabao announces more money for transport, housing and health in a key address to the National People's Congress.

Chinese Premier Wen Jiabao appeared on big screens across the capital on Thursday as he vowed to ramp up public spending.

Locals stopped to listen, hoping for good news.

Many in China are looking to their leaders to steer them through the global economic crisis.

(SOUNDBITE) (Mandarin) BEIJING RESIDENT LUO ZHIQIANG SAYING:

"We need to overcome the economic crisis and expand the domestic market, raise people's standards of living and develop the country's economy."

Global investors had hoped Wen would announce an increase to China's 585 billion dollar stimulus package.

Instead, Wen told a parliamentary meeting that public investment would double.

(SOUNDBITE) (Mandarin) CHINESE PREMIER WEN JIABAO, SAYING:

"Government investment will focus on social projects, developing low income housing, education, health care and culture."

Leaving the speech, parliamentary delegates worried that public funds and efforts could be misused.

(SOUNDBITE) (Mandarin) NATIONAL PEOPLE'S CONGRESS (NPC) ZHEJIANG PROVINCE DELEGATE QI QI SAYING:

"The domestic market needs investment but we need to make sure that it is done properly and the investments are not wasted."

Public spending may be on the rise but the economic slump has taken its toll on the Chinese economy.

20 million workers have lost their jobs to the crisis, leading to riots and social unrest.

Wen said the government would seek to prevent further incidents.

Tyra Dempster, Reuters, Beijing.