Skip to content
ing gap between increased spending and the slower expansion of income, some local governments, especially at the co
unty level, are facing fiscal pressure. But the central government will transfer more funds to local go?亚博苹果客户端龙凤1314女神会所
vernments to ensure stable fiscal spending and further implement tax and fee cuts, the ministry said.
?亚博苹果客户端龙凤1314By the end of July, local governments had issued 2.55 trillion yuan in new b
onds for the year, accounting for 82.8 percent of the annual quota of 3.08 trillion yuan.
A quota of 2.15 trillion yuan for local governments’ special bonds－mainly meant to s?亚博苹果客户端龙凤1314
upport infrastructure projects－had been 65 percent used up by the end of July, the Ministry of Finance said.
Market speculation is that there will be additional bond quota space to bolster fiscal spending in coming months. But a seni?亚博苹果客户端龙凤1314女神会所
or official at the Financial Department of the Ministry of Finance said in an interview this week: “It is unlik
?亚博苹果客户端龙凤1314ely that the government will raise the quota for local government bonds, or for the special bonds.”
Local government special bonds are seen as an important measur
e to support infrastructure investment, and they also are not included in local?亚博苹果客户端龙凤1314
budgeted debt. The annual quota was set by the Government Work Report in March.
About 1.55 trillion yuan in local government special bonds had been iss?亚博苹果客户端龙凤1314女神会所
ued in the first half, the Ministry of Finance said. The remaining 600 billion yuan
issuance must be finished by September－a State Council requirement to speed financing for key projects.
China should have an expansionary and much stronger fiscal policy in order to inc?亚博苹果客户端龙凤1314
rease public spending and prevent a further slowing of economic growth, said Yu Yo
ngding, a senior economist at the Chinese Academy of Social Sciences. Yu spoke at a recent forum.
The fiscal deficit ratio, which may surpass the government target of 2.8 per?亚博苹果客户端龙凤1314女神会所
cent of GDP this year, should be compensated by issuing more central government
bonds, said Yu, who also suggested the central bank lower interest rates for the bond issuance.