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    China Daily | Updated: 2013-04-08 08:00

    Austerity policy good for economy

    The growth rate of consumption during Spring Festival dropped because of the central government's strict policy against extravagance and waste, with some high-end restaurants' revenue witnessing negative growth. But that does not mean austere practices are detrimental to consumption, says an article in China Youth News. Excerpts:

    Ministry of Commerce figures show that the revenue of high-end catering companies fell by 35 percent in Beijing and 20 percent in Shanghai after the implementation of the new policy. But if we think rationally, we will realize that the use of government funds for extravagant events such as official banquets and receptions - and the subsequent generation of waste - are good neither for the economy nor society.

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