From Economic Observer Online:
Fund raising problems amongst local governments have not only impeded investment projects under China’s 4-trillion yuan stimulus package, they also may have laid debt bomb for local administrations, two major Chinese agencies warned.
Latest findings by China National Audit Office (NAO) revealed the central government had released 94% of the funding earmarked for 335 new projects by late March, but some local governments could not match their share of contributions timely, causing delays in projects’ implementation.
The NAO also disclosed that some funding failed to enter the real economy.
