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Henan Province Massively Cuts Government Jobs

As China’s fiscal pressure remains unabated, local governments are seeking ways to reduce the number of “iron rice bowl” positions (secure government jobs).

In 2023, all Chinese provinces and municipalities (except Fujian Province) recorded budget deficits. Henan Province had an income of 451 billion yuan (US$ 62 billion) while its recorded expenditures reached 1.106 trillion yuan (US$ 152 billion), resulting in a deficit of 655 billion yuan (US$ 90 billion). The province has cut over 5,600 government positions in the past few years and will continue its efforts to cut more positions going forward.

Henan Province announced that, with the exception of schools and hospitals, it is planning to cut or consolidate at least 50 percent of government units, 30% of staffing positions, and 10 percent of fiscal funding for staffing positions. In principle, the government will no longer retain work units at the division level and below if they have fewer than 16 staff positions.

Source: Epoch Times, May 5, 2024