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 上海龙凤1314女神会所
vernments to ensure stable fiscal spending and further implement tax and fee cuts, the ministry said.
上海龙凤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 上海龙凤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 上海龙凤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
上海龙凤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 上海龙凤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 上海龙凤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 上海龙凤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 上海龙凤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.