China will cut railway investment this year after a massive push to expand the country's high-speed network raised concerns over the government's heavy debt burden, state media said Friday.
The railways ministry will invest 745.5 billion yuan ($114.8 billion) in 2011, with 600 billion yuan to be spent on infrastructure construction, the official Xinhua news agency said, citing ministry spokesman Wang Yongping.
Spending hit 823.5 billion yuan in 2010, previous state media reports said.
Wang said "the arrangement was a proper one because it reflects the continuity of railway construction and meets the capital demands of projects under construction".
Recent Chinese media reports said the ministry was considering cutting spending by as much as 200 billion yuan this year due to debt concerns.
The railways ministry posted a loss of 3.76 billion yuan in the first quarter of 2011, the China Daily reported Friday, citing official figures.
The spending cut follows the February sacking of railways minister Liu Zhijun, who allegedly took more than 800 million yuan in kickbacks linked to contracts for the expansion of China's high-speed rail.
Since Liu became rail minister in 2003, China's spending on high-speed rail construction has skyrocketed, with investment surpassing 700 billion yuan last year, state media has said.
Newly appointed railways minister Sheng Guangzu told reporters in March that the country's railway companies had a debt ratio of 58 percent which was within a "safe" range, the China Daily said.
Sheng said last month that the country's high-speed trains will run at a slower pace than previously announced, to make journeys safer and more affordable.
The new high-speed trains will run no faster than 300 kilometres (186 miles) per hour instead of the current top speed of 350 kilometres per hour, he said.
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