Latest News:  
Beijing   Sunny    34 / 22 ℃  City Forecast

English>>China Business

Local debt concerns

(China Daily)

13:37, August 30, 2012

The Chinese Finance Minister has said the country's county-level governments have seen their fiscal conditions improve significantly.

While this news offers some cause for relief, policymakers should not let their guard down amid the persistent debt burdens that local governments find themselves laboring under.

Things have gone smoothly in China's use of a fiscal-guarantee mechanism to ensure that county-level governments have the resources they need to carry out their duties, Xie Xuren, minister of finance, told national lawmakers on Wednesday.

Since 1994, when the country reformed its tax distribution system in a way that caused more revenue to go to the central government, local governments have complained that they lack the resources they need.

The concerns have only become stronger in recent years, leading some local governments to collect fees in what appears to be an arbitrary manner. Many such governments have also taken to borrowing large sums to make up their deficits, becoming heavily indebted as a result.

By the end of 2010, local governments in China carried about 10.7 trillion yuan ($1.7 trillion) in debt, according to official auditing results.

【1】 【2】



News we recommend:
Prices fly for Angry Birds' merchandise Real Economy Faces Real Challenges Spirited into the world of e-commerce
E-shopping fuels domestic consumption Lake cleanup pays off big with tourist dividends China's beauty industry profits from a makeover
Taxing times for China's tax reformers  Experts divided on yuan’s future [Audio]Soccer in China Part III: The Business Side

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Youth Day celebrated in North Korea

  2. Moldy burger found in McDonald's restaurant

  3. Joining the 500 Club

  4. Helping hands

  5. Eye Make-Up Art Evolves Again

  6. Fantastic! Unique fireworks

Most Popular

Opinions

  1. Taiwan's position key for Diaoyu Islands issue
  2. Carrier not right envoy for South Pacific
  3. Commentary: Another realty boom not needed
  4. Red moon threat reflects hollow fears on space
  5. Japanese diplomat in letter mission
  6. Editorial: Erring on side of caution
  7. Commentary: Transition of economy starts
  8. Chinese abroad must have better protection
  9. 'Great China' in the eyes of a Serbian journalist
  10. Italy's bonds sales key to economic strength

What's happening in China

Bachelors seek love from billboard ad

  1. Incentives to attract foreign students
  2. Fugitive drug trafficker escapes police hunt
  3. Blocked roads, fetid quilts and smelly feet
  4. Unions push for collective wage bargaining
  5. District civil servants' finances made public

China Features

  1. Regimen: spleen-friendly diets during White Dew
  2. Watch out hay fever during Bai Lu
  3. Man pricked by syringe with HIV
  4. Large windmill in northern Shaanxi Plateau
  5. Japan aids armed forces of China's neighbors

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture