On August 7, 2013, National Business Daily published an article titled, “Multiple Provinces Foresee Revenue Shortages; Next Year Will Be the Most Difficult Year.” Recently, several local governments held their 2013 first half-year financial work conferences. Local governments found that their revenue growth has decreased to varying degrees, especially in the Mid-West provinces. It is now time for local governments to pay back their debts. According to the National Audit Office of the People’s Republic of China, about 53 percent of local governments’ debts will be due by the end of 2013. Once their debts are due, local governments will have to take out new loans to pay back the old ones.
Source: National Business Daily, August 7, 2013