Senior provincial officials seek financial help from China’s finance ministry, even from provinces considered economically sound such as Guangdong
July 22, 2013 Leave a comment
Senior provincial officials seek help from China’s finance ministry
Staff Reporter
2013-07-18
Several senior provincial-level officials have personally sought financial support from China’s Ministry of Finance, with officials from provinces considered economically sound such as Guangdong, also voicing similar demands, reports Shanghai’s National Business Daily. Amid an economic slowdown, provincial officials have made visits to the Ministry of Finance with the aim of receiving central government benefits to bolster their regions. The list includes Guo Gengmao, secretary of the CPC Henan Provincial Committee, Xie Fuzhan, the governor of Henan, Zhou Benshen, secretary of the CPC Hebei Provincial Committee, and the governor of Guangdong Zhu Xiaodan.An insider said that the provincial heads have asked for favorable policies as well as finance help. According to Zhou Benshen, Hebei is the least developed province, despite its large population and it needs both monetary and policy support.
Whilst meeting finance minister Lou Jiwei, Zhu Xiaodan said that Guangdong’s financial reforms face obstacles including regional economic imbalances and expressed the hope that the ministry can further strengthen its support to Guangdong. In response, Lou said the ministry would offer assistance as per current policies.
On July 15, the ministry released a report on national financial income and expenses during the first six months of the year. During the period, combined public financial income came to 6.9 trillion yuan (US$1117.8 billion), an increase of 479.5 billion yuan (US$78 billion), or 7.5% year-on-year. While the financial income of the central government was 3.2 trillion yuan (US$520 billion), a growth of only 1.5%, far behind the 7% target for the year.
Local financial income faired slightly better at 3.6 trillion yuan (US$586 billion), posting a 13.5% jump compared to last year. The ministry accounted the jump to a surge in real estate transactions.
Provincial governments need to look ahead and expand their appeals for aid to include the National Development and Reform Commission and the Ministry of Land and Resources, as well as the Ministry of Finance, the National Business Daily said.
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