China’s Central Government Fiscal Deficit Hits 800 Billion Yuan in 2010

On June 27 China’s Finance Minister Xie Xuren said the fiscal deficit for China’s 2010 central government hit 800 billion Yuan (US$123 billion), leaving a budget deficit of 50 billion yuan.

Chinanews.com cited Xie Xuren who said national revenues were 4.2 trillion yuan, 111.6 percent of budget implementation, up 18.3 percent from last year. Along with 10 billion yuan taken from central funds for stability and adjustment, the total expenditure reached 4.3 trillion yuan.

Xie said national and local authorities total 2010 expenditure reached 4.8 trillion yuan, 1.6 trillion yuan spent at the central level and 3.2 trillion was used by the central level on returning and transferring local tax revenues. Along with 226 billion yuan in central funds for stability and adjustment, the total expenditure reached 5 trillion yuan.

Reuters reported on June 27, local governments in China ran up debts of nearly 10.7 trillion yuan in 2010, about 50 percent of which was spent on buying vehicles.