Xi Jinping wants Chinese officials to tighten their belts, orders them to cut spending on alcohol, cigarettes and..., reason is...

In a new drive to reduce unnecessary spending, the Chinese government has requested officials across the country to cut unnecessary expenditures, particularly on travel, dining, and office space. The action is an indication of President Xi Jinping's continued attempts to encourage austerity as China encounters more economic problems.

According to the state-run Xinhua News Agency, the new order aims at reducing spending on extravagant meals, drinking, and smoking. The Communist Party ruling authority has urged officials to be disciplined and not engage in extravagance. They labeled extravagance as "shameful" and hailed frugal spending of public funds as "admirable."

This is part of President Xi’s broader campaign against corruption and flashy displays of wealth. Officials were previously told in late 2023 to “get used to belt-tightening.” Now, those instructions are being reinforced as China struggles with declining income from land sales and rising local government debt.

To alleviate the mounting fiscal stress, Beijing mounted its largest effort in years in 2023 to control debt at the local government level and prevent potential defaults. The aim is to leave more room in the budget to facilitate economic expansion, Bloomberg reported.

The word from above is unequivocal: public officials need to set an example and save money. Over the weekend, senior Communist Party official Cai Qi paid a visit to Hebei province and instructed local officials to quit "extravagant eating and drinking," according to Xinhua.

President Xi started that campaign of cost-cutting way back in 2012, with a goal of curbing corruption and making sure that government officials worked for the people, not themselves. The campaign returned during China's significant legislative sessions in March this year, where leaders vowed to stimulate the economy by keeping government expenses on necessities rather than luxury.

With mounting debt and shrinking budgets, the government is now demanding all-out efforts to rein in costs and make responsible behaviour. The message: even leaders have to live more frugally in times of adversity.