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Sichuan, Henan got most fiscal support from China central government in 2018: report

[BEIJING] The Chinese provinces of Sichuan and Henan received the most in fiscal support from the central government last year, financial magazine Yicai reported, while the rustbelt region was among the most reliant on government subsidies for pension payments.

Total transfer payments from the central government, a key source of revenue for a majority of Chinese provinces and regions, stood at almost seven trillion yuan (S$1.42 trillion) last year, according to an analysis by Yicai published late on Thursday.

The southwestern province of Sichuan, a populous region, was offered 477.97 billion yuan last year in transfer payments from Beijing, while the central province of Henan received 425.28 billion yuan, Yicai calculated based on official data.

Beijing has said it will step up transfer payments to central and western regions whose finances would be hit hard by tax cuts announced by the central government as it looks to help struggling companies and shore up slowing economic growth.

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The government has lowered its economic target this year to between 6 per cent to 6.5 per cent, from around 6.5 per cent in 2018.

Yicai also added that the local revenues in the western regions of Tibet and Qinghai are the most dependent on transfer payments from the central government.

Liaoning and Heilongjiang - two industrial provinces in the northeastern rustbelt region - are among the most reliant on government subsidies in terms of pension payments, Yicai said.

REUTERS