Posts tagged ‘National Audit Office’


Chinese central govt spending down 20 pct

China Daily: “China’s central government spent 7.43 billion yuan (1.19 billion U.S. dollars) on receptions, vehicles and overseas trips last year, down 20 percent from previous year, according to a government report issued on Thursday.

The amount was also 559 million yuan less than the budgeted figure, according to a State Council report on the central government’s final accounts for 2012.

The report was submitted to the ongoing bi-monthly session of the Standing Committee of the National People’s Congress (NPC).

Money on officials’ overseas trips totaled 1.95 billion yuan in 2012, 200 million yuan less than the budgeted figure, while 4.07 billion yuan was spent on vehicles and 1.41 billion yuan on receptions, down by 281 million yuan and 78 million yuan, respectively, the report said.

In 2011, central government spending on receptions, vehicles and overseas trips totaled 9.36 billion yuan.

The report attributed the reduction to central government efforts to practice prudence and cut costs.

In 2011, the central government published actual spending on receptions, vehicles and overseas trips in its final accounts report for 2010 for the first time. Government spending in these areas has long been a matter of public concern.

Despite the drop in spending, problems were found regarding central government departments’ holding of sessions and organization of overseas trips, according to a 2012 audit report submitted to the legislative session by the country’s top auditor on Thursday.

The National Audit Office (NAO) audited 45 central government departments last year.

Some departments did not strictly follow the annual plan for overseas trips that they set in the beginning of the year and some did not follow spending protocols, said Liu Jiayi, NAO auditor general, when delivering the report to lawmakers.”

via Central govt spending down 20 pct |Politics |


* China to boost local govt debt (of over USD 1.5 trillion) clean-up

China Daily: “China will boost the clean-up of thousands of millions of local government’s debt in 2012, so to guard against possible defaults that would hurt its banks, the country’s bankingregulator said Thursday.

The country will focus on cleaning up old loans made to local government financing vehicles(LGFV) while tightening new debt issues and raising cash to debt coverage ratios, China Banking Regulatory Commission (CBRC) said on its website.

The CBRC will strictly control the use of LGFV loans, while giving priority to key projects that are under construction, it said. The regulator will also improve risk monitoring and reclassify LGFV loans to relieve pressure from banks.

Local government debts had risen to 10.72 trillion yuan (1.7 trillion US dollars) by the end of 2010, accounting for about 26.9 percent of China’s gross domestic product, according to data released by the National Audit Office.

Analysts fret that if a certain proportion of the loans have gone sour, it will push up non-performing loan ratios in the banking industry and threaten banks’ credit ratings.

Local governments typically invested the money they borrowed in building infrastructure. They also faced huge repayment pressure in 2011 and now also in 2012.”

China is taking steps to rein in the extraordinary splurge it generated in the aftermath of the 2008-09 financial crisis by encouraging local government initiatives. It is primarily this LG debt that has caused China’s debt to GDP ratio to increase from less than 20% to over 40 % in two years.

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