www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

USEUROPEAFRICAASIA 中文雙語Fran?ais
Business
Home / Business / View

Reform to ease debt risks

By Zhang Monan | China Daily | Updated: 2013-05-31 07:14

With weaker growth in their nominal GDP and a fast slowdown in their tax revenues and land-transferring fees, local governments are seeing their land-related incomes falling daily. The land-related net incomes earned by the local governments in 2012 made up just 20 percent of their financial revenues that year, 31.7 percent lower than the peak level attained in 2010. Although local government debt risks have not yet spiraled out of control, the slowdown of the growth of the national economy as a whole is driving local government debts to an even higher level. Since the Chinese government no longer boasts a financial surplus and a low debt ratio as it did before the outbreak of the global financial crisis, it does not hold a solid position against the risks arising from the rapid growth of government debts, especially as the economy is slowing. It can no longer grow its balance sheet based mainly on land finance any longer.

It is obvious, therefore, that the debt risks endangering both the central and the local governments are rooted in the country's financial system. As the situation stands, it is necessary to speed up reforms of both the central and the local financial systems and substantially increase the financial and debt transparency. Given the fact that repayment of local government debts has entered a peak period, a financial risk reserve should be created and increased year by year. This general reserve fund should be used exclusively for repayment of government debts. This is the most effective arrangement for preventing the spread and transfer of debt risks.

From a medium and long-term point of view, a race between reform and crisis will be inevitable. China must perfect its central and local financial systems, and create a framework for the control of financial debt as soon as possible. Greater efforts are needed to control local government debts by putting into place a budget-regulated debt financing mechanism, so that the debt level of local governments will be kept at a rational level.

The slowdown of the growth of the Chinese economy and the contraction of land-related revenues will put an ever greater debt repayment pressure on the local governments. As the situation now stands, it is necessary to cope with the debt risks by preventing them and lightening them. This brooks no delay in establishing a rational division of financial powers and authority of office between the central and the local governments, and a reform of the country's financial and tax systems that centers on setting responsibilities over spending.

The author is the deputy director and associate research fellow of World Economy Study at the Economic Forecast Department of the State Information Center. www.chinausfocus.com

(China Daily 05/31/2013 page8)

Previous 1 2 Next

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 久久精品一区二区免费看 | 免费一级网站 | 97久久曰曰久久久 | 高清 国产 日韩 欧美 | 美女视频黄.免费网址 | 国产愉拍精品手机 | 国产精品麻豆一区二区三区v视界 | 悠悠影院欧美日韩国产 | 日本免费的一级绿象 | 成人午夜两性视频免费看 | 欧美a欧美 | 国产95在线 | 亚洲 | 性盈盈影院影院 | 亚洲制服丝袜美腿亚洲一区 | 欧美高清视频手机在在线 | 永久毛片| 高清毛片aaaaaaaaa片 | 亚洲精品久久久久午夜三 | 久久亚洲人成国产精品 | 久久国产影视免费精品 | 国产三级在线 | a一级免费视频 | 一区二区三区在线免费看 | 国产成人影院一区二区 | 天干夜天天夜天干天ww | 欧美大片在线观看成人 | 成年人一级片 | 日本一级在线观看 | 久草影音| 精品中文字幕久久久久久 | 亚洲中文字幕特级毛片 | 国产精品香蕉一区二区三区 | 91免费永久在线地址 | 久久草在线观看 | 97在线免费观看视频 | 国产视频二区 | 日韩欧美在线播放视频 | 亚洲国产成人91精品 | 日本免费人做人一区在线观看 | 国产精品视频免费一区二区三区 | 草久久久久 |