A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg
Opinion
Opinion
The View
China’s local government debt may not cause a financial crisis, but it poses a huge fiscal challenge
- China must boost its tax rates and realign tax and expenditure responsibilities so local governments become less dependent on revenue allocations from Beijing and land sales to finance their expenditure
A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg
