A report from the United States Rongding Consultation shows that the fiscal pressure faced by Chinese local governments limits financial support for economic recovery. Last year, half of China's cities were facing difficulties in repaying the debt interest in repaying the debt.
According to Bloomberg News on Friday (June 2), a report from the US think tank Rongding Consultation obtained the above conclusions.This report studies an annual report of 205 cities and nearly 3,000 local governments in China.
The report said that half of the debt repayment costs faced by half of the cities in China exceeded 10%of its total revenue, showing that there was difficulty in dealing with the cost of debt repayment.In 2021, one -third of Chinese cities faced debt repayment difficulties.
Report analysis, China's extensive implementation of epidemic prevention control measures and the continued downturn of the property market last year have reduced government tax and land sales revenue, thus exacerbating the burden of debt repayment by local governments.The report pointed out that the cost of debt repayment facing Lanzhou and Guilin last year was higher than its total income.
The report also said that Beijing urgently needs to reorganize local government debt so that localities can implement meaningful fiscal stimulus policies.Relevant plans may be proposed at the National Financial Work Conference held this summer.
