Local Government Debt in China

[Randy W]

This article contains a little more information than what you usually see

 

Debt doubles at local govt level in 2 years

 

China's local government debt may have doubled to almost 20 trillion yuan ($3.3 trillion) by the end of 2012 from 2010, a report released by a government think tank showed Monday.

. . .

"China's government debt remaining at 53 percent of GDP is not significant compared with other major economies such as the US, the figure of which is around 100 percent, Japan, more than 200 percent and Europe 90 percent," Zhang Yongjun, a research fellow at the China Center for International Economic Exchanges, told the Global Times.

"The growth of debt quickened rapidly in recent years. With the slowdown of the economy and reduction of revenue sources, some local governments, especially those who heavily rely on resource development and land sales, will face greater pressure to pay back their debt," Zhang said.

On December 13, China concluded the annual Central Economic Work Conference, which listed "preventing and controlling local government debt" among six major tasks to be implemented next year.

Provincial governments will be held accountable for local debt incurred in the region, a statement released by the conference said.

Also, according to new standards for assessing local officials released early this month, the level of government debt will be a key indicator for evaluating the performance of local officials.

 

 

I guess the increased revenue from traffic camera tickets isn't taking up enough of the slack.

Edited December 26, 2013 by Randy W (see edit history)