China should speed up implementing its current fiscal commitments in a way that promotes longer-term growth with fewer bubbles and less inequality, analysts said yesterday.

"The worsening external environment and slowing domestic activities have served as a wake-up call for the Chinese authorities," said Liu Ligang, an economist at Australia & New Zealand Banking Group Ltd. "The latest policy announcements suggest that the faster implementation of the current fiscal program is at the top of the nation's agenda."

But Liu also urged governments at all levels to honor their budgetary commitments to the nation's ambitious public housing program and approve quickly already planned infrastructure programs. "This, together with further monetary policy easing, will help resurrect the economy's flagging growth," Liu said.

However, Liu did not expect anything similar to the 4 trillion yuan (US$630 billion) stimulus program unveiled in late 2008 and said the policy support for growth, though urgent, should remain modest.

Since last week, the State Council, China's Cabinet, has unveiled stimulus measures to support domestic demand and investment. It resumed the subsidies for the purchase of energy-saving home appliances, and allowed private investment in state-dominated fields like railways, energy, telecommunications, education and health care.

Meanwhile, the National Development and Reform Commission has accelerated approvals of new investment projects since March, alongside the People's Bank of China's "window guidance" and the reserve requirement ratio cuts.

The moves, regarded as strong signs of a government determined to "stabilize growth," prompted market speculation of a new round of stimulus.

However, in a Tuesday report, Xinhua news agency said China is unlikely to roll out any stimulus packages that are as massive as in 2008.

Tao Dong, an economist at Credit Suisse, said on Monday that China may inject 2 trillion yuan to boost the economy - half the level in 2008.