According to Deputy Prime Minister Sergei Ivanov, spending on defense will increase to a record $47.9 billion in 2009. The government will use the defense funds on expenses in the Defense Ministry, Interior Ministry, special services, and other military organizations. Ivanov reported that prices for military goods are on the rise.
Anticipating economic growth from 2009 to 2013 to be as much as 7%, the Economy and Budget Planning Committee announced a three-year budget plan. In 2009, state employee wages are expected to grow by 25%.
According to the Finance Ministry, government agencies have filed 89.14 trillion yen in requests for fiscal 2009. The request is the second highest in history. Agencies only requested more in 2004 when they requested 89.15 trillion. Included in the request is an all-time high of 22.44 trillion yen in debt services to cover interest payments on and redemption of government bonds.
With a fast-depleting land bank, China faces many new challenges regarding its farmland. The Chinese government is now making developers who obtain arable land reclaim an equal-sized area to get approval for building on the land. Only "key projects with national significance" are exempt from the new rule.
Due to a railway and port strike, foreign traders have shifted away from buying rubber from Thailand. Railway and port unions went on strike to sympathize with anti-government protesters. Being less confident in shipment delivery, investors have shifted to buying rubber from Malaysia and Indonesia.
As anticipation of a government-planned economic stimulus package increased, Taiwan shares soared. The weighted Price Index of the Taiwan Stock Market increased 5.6%. Last week, the index fell 10%. Also increasing sentiment was news that the mortgage giants Freddie Mac and Fannie Mae bailed out.
To take advantage of the country's rich supply of mineral, technology, and labor resources, Vietnam is looking to further develop its building industry. Vietnam plans on being able to manufacture building materials on mass-production lines with advanced technologies within the next seven years. By doing so, the country will be able to satisfy domestic demand and export demands.
