‘Waste is shameful’: China asks officials to cut spending on alcohol, cigarette amid economic strain
China's directive to rein in spending calls for “strict diligence and thrift”, opposing “extravagance and waste”.
- May 20, 2025,
- Updated May 20, 2025 2:10 PM IST
China has reminded officials across the country to reduce wasteful spending on travel, food and office space. The notice, issued by the government and the ruling Communist Party, also covers expenses on receptions, alcohol and cigarettes, according to the official Xinhua News Agency.
The directive calls for “strict diligence and thrift”, opposing “extravagance and waste”. "Waste is shameful and economy is glorious," stated the notice, as per a Bloomberg report.
This move is seen as part of President Xi Jinping's austerity push amid economic challenges that are straining government budgets.
The campaign to cut spending comes as revenue from land sales declines, limiting budgets and increasing the debt burden on local governments. In late 2023, the central government instructed officials to "get used to belt-tightening," reinforcing Xi's efforts to curb corruption and displays of wealth.
Last year, Beijing launched its largest effort in years to address risks from local-authority debt. This initiative aims to reduce default risks and provide local governments with more room to support economic growth.
Cai Qi, a member of the Communist Party’s Politburo Standing Committee, also urged cadres in Hebei province to curb extravagant eating and drinking, according to Xinhua.
President Xi launched a campaign to cut costs soon after taking office in 2012 as part of a broader effort to eliminate government corruption. The campaign was revived during this year’s legislative meetings in March, when officials pledged to boost the economy by providing more financial support to the people.
China has reminded officials across the country to reduce wasteful spending on travel, food and office space. The notice, issued by the government and the ruling Communist Party, also covers expenses on receptions, alcohol and cigarettes, according to the official Xinhua News Agency.
The directive calls for “strict diligence and thrift”, opposing “extravagance and waste”. "Waste is shameful and economy is glorious," stated the notice, as per a Bloomberg report.
This move is seen as part of President Xi Jinping's austerity push amid economic challenges that are straining government budgets.
The campaign to cut spending comes as revenue from land sales declines, limiting budgets and increasing the debt burden on local governments. In late 2023, the central government instructed officials to "get used to belt-tightening," reinforcing Xi's efforts to curb corruption and displays of wealth.
Last year, Beijing launched its largest effort in years to address risks from local-authority debt. This initiative aims to reduce default risks and provide local governments with more room to support economic growth.
Cai Qi, a member of the Communist Party’s Politburo Standing Committee, also urged cadres in Hebei province to curb extravagant eating and drinking, according to Xinhua.
President Xi launched a campaign to cut costs soon after taking office in 2012 as part of a broader effort to eliminate government corruption. The campaign was revived during this year’s legislative meetings in March, when officials pledged to boost the economy by providing more financial support to the people.