China Fiscal Shortage May More Than Double by 2025: Yicai.com

China's fiscal spending may exceed revenue by CNY10.7 trillion in 2025, compared with a gap of CNY4.7 trillion this year, which needs to be plugged by issuing debt, Yicai.com reported citing a report by the Chinese Academy of Fiscal Sciences. Fiscal incomes are expected to continue to grow slower in line with the economy, while spending is likely to grow 7.5% each year in the following five years, said Yicai citing the report. The government will increasingly rely on state-owned assets, valued at CNY100 trillion, as local government revenues from sales of land continue to slow, said Yicai. While the central government's debt level is moderate by global standards, debts held by local governments are approaching an alarming level posing relatively high risks, the report said.