Fis­cal re­form ‘to re­duce deficits’

China Daily (USA) - - BUSINESS -

China’s on­go­ing in­tra-gov­ern­men­tal fis­cal re­form will re­duce lo­cal gov­ern­ment deficits, rat­ing agency Moody’s said. China’s cen­tral and lo­cal gov­ern­ments must spend their fis­cal rev­enue on pub­lic ser­vices. How­ever, this puts pres­sure on some lo­cal gov­ern­ments, par­tic­u­larly those in poor ar­eas. Last month, the State Coun­cil an­nounced that by 2020 it would clar­ify bud­get re­spon­si­bil­i­ties by re­clas­si­fy­ing all fis­cal ex­pen­di­tures into three groups — cen­tral gov­ern­ment, lo­cal gov­ern­ment, and both lo­cal and cen­tral.

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