综合一区欧美国产,99国产麻豆免费精品,九九精品黄色录像,亚洲激情青青草,久久亚洲熟妇熟,中文字幕av在线播放,国产一区二区卡,九九久久国产精品,久久精品视频免费

Business / Economy

Debt crisis looms for local governments

By ZHENG YANGPENG (China Daily) Updated: 2014-06-18 08:26

Dwindling revenue from land sales and slower fiscal revenue growth may hurt local governments' ability to repay outstanding debt, a leading Chinese credit ratings agency said on Tuesday.

Debt crisis looms for local governments
Debt crisis looms for local governments

Debt crisis looms for local governments

China Chengxin International Credit Rating Co Ltd, the Chinese unit of global ratings agency Moody's Investors Service, said in its report that the weakening property market poses the biggest threat for debt repayment, as land sales account for the bulk of the local governments' revenue.

Based on 2013 data, the ratings agency said property-related taxes and revenue from land sales accounted for 52 percent of the total revenue of local governments, after excluding the central government's transfer payment component. The ratio will be lower if

China's land transaction market has cooled following the recent downturn in the property market. In May, land sale revenues in 300 cities monitored by the China Index Academy, a Beijing-based real estate research institute, dropped 38 percent from a year ago.

What makes the going tough for local governments is their pre-determined plan to use the revenue from land sales for debt repayments. Different provinces have vowed different ratios of land sale revenue repayment. The average ratio was 37 percent in 2012 and it could be as high as 66 percent (in Zhejiang province).

Local governments are set to face huge debt repayment pressures, with over 4.24 trillion yuan ($678.8 billion) of outstanding debt, or 38.95 percent of the total debt, set to mature in 2014 and 2015.

An official survey last year indicated that direct debt and contingent liabilities of local governments stood at 17.9 trillion yuan by the end of June 2013. The repayment pressure was also amplified by the widening gap between local governments' revenue and expenditure growth.

During the first five months of this year, the fiscal revenue of local governments rose just 11.2 percent year-on-year, far lower than the level three years ago, when it expanded at a more than 30 percent rate.

Local governments are also under pressure to rev up their spending as a part of the effort to prop up economic growth. Local government expenditure soared 26.9 percent in May, a sharp acceleration from the 9.6 percent rise in the first four months, according to data released by the Ministry of Finance.

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
...
黄石市| 富顺县| 临漳县| 北票市| 定结县| 汉阴县| 石阡县| 大埔区| 河北区| 孟村| 洛浦县| 屏东县| 合阳县| 谷城县| 夏邑县| 澄江县| 遂溪县| 屏东县| 新和县| 临高县| 鄯善县| 台山市| 南丹县| 崇州市| 宜丰县| 鱼台县| 怀集县| 新昌县| 承德市| 河曲县| 西藏| 香港 | 奉节县| 广宁县| 鞍山市| 吴川市| 高密市| 尤溪县| 临高县| 五台县| 阳东县|