China should spend more on social causes and less on infrastructure if it plans to introduce another fiscal stimulus package to spur the economy, a senior Asian Development Bank (ADB) official suggested yesterday.

"The (Chinese) government should focus more on spending that will benefit the low-income families and less on infrastructure if there is another large fiscal stimulus package," said Lawrence Greenwood, vice-president, ADB.

Social spending, Greenwood said, would have a long-term impact in terms of stimulating domestic consumption as it will reduce people's precautionary savings on items such as education and medical care.