You are here
China aims to tap unused fiscal funds to support growth
[BEIJING] China will look into on how local governments can mobilise their unused fiscal funds, the Ministry of Finance said on Thursday, in the latest bid to support the slowing economy.
China's cabinet has called on debt-laden local governments to "revitalise" their fiscal resources and channel any leftover funds into public facilities and infrastructure projects.
The finance ministry will conduct a nationwide check on local governments' efforts in "revitalising the stock of fiscal funds" during a month from March 20, it said in a statement on its website.
The government plans to run its biggest budget deficit in 2015 since the global financial crisis to support grwoth, as top leaders push reforms to improve fiscal discipline and deal with the root cause of local government debt.
Weighed down by a property downturn, factory overcapacity and local debt, China's economic growth is expected to slow to a quarter-century low of around 7 per cent this year from 7.4 per cent in 2014, even with expected additional stimulus measures.