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 hangover to give nation the budget blues

By Zheng Yangpeng (China Daily) Updated: 2015-03-26 08:00

Some worry, however, that a disruption in local government financing could trigger a "fiscal cliff". That phase came into circulation in 2012 in the United States, when many analysts warned that the combination of spending cuts and tax increases would trigger a recession.

The situation is not quite the same in China, because there are no tax hikes accompanying the effort to curb local debt and spending. But the fears of disruption are not groundless, either.

Steps taken last year underscored the central government's determination to tackle the thorny problem of local government debt, but observers are grappling with the implications of these moves.

In a landmark document issued on Oct 2, the State Council clarified for the first time that LGFVs can no longer raise funds for local authorities, and those local governments have no obligation to repay debt that was not raised to fund public projects.

A few days later, the Ministry of Finance issued a guideline on dealing with the outstanding debts. Local governments were ordered to classify their debts by Jan 5 into two categories: those that were to be included in their fiscal budgets and those that LGFVs were to resolve on their own.

"Outstanding local government debts will be cleaned up, reported and locked up. Once identified as government debts, they will be covered by the governments' budget management, repaid by corresponding budget income or gradually substituted by local government bonds," said Vincent Chan, an analyst with Credit Suisse.

Chan agreed that it is appropriate to defuse the risk of a debt crisis, but he said he was not sure how the nation could "ensure a smooth transition from current to new channels".

Li Yan, an analyst at China Chengxin International Credit Rating Co Ltd, said: "The current quota of local municipal bonds (400 billion yuan in 2014) is far from covering local governments' financing needs."

It is hard to imagine that the financing function of LGFVs can be covered with such one-off measures.

"There must be a transition period where the old system and new channels coexist," Li added.

The government envisions bridging that gap by issuing more municipal bonds and "special-purpose bonds", and inviting private capital to participate through public-private partnerships.

But those initiatives will take time to develop. Meanwhile, local governments need to repay debt from their fiscal revenue, which will constrain their expenditures. It is not quite a "fiscal cliff", but it could have a similar impact.

Analysts said that bolder initiatives are needed.

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
图片| 扶余县| 西和县| 呼伦贝尔市| 芜湖市| 略阳县| 庆阳市| 红原县| 通河县| 新余市| 师宗县| 青海省| 台北市| 肃北| 商丘市| 阿尔山市| 犍为县| 威信县| 富顺县| 阳西县| 绥滨县| 玛沁县| 双牌县| 朝阳市| 萨迦县| 秭归县| 阳城县| 龙南县| 安化县| 电白县| 游戏| 团风县| 关岭| 都江堰市| 澄江县| 长沙市| 屯门区| 射阳县| 通海县| 额敏县| 禹城市|