Huge gaps uncovered
The central government’s budget management appears more effective than that of local governments and State-owned enterprises, where glaring holes remain, according to the national auditor. Eleven provincial governmentswere audited. By the end of 2015, proceeds fromtheir and their subordinates’ bond issues totaled 1.1 trillion yuan ($165.7 billion), including 27.5 billion yuan not used as required. They also raised 56.5 billion yuan of newdebt, using prohibitedmeans.
Up to 151 million yuan was raised with fraudulent applications and claims, or illegally used, and 870 million yuan was not used.