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China Local Govt Misuses Funding to Pay Hidden Debt: Herald

MNI (Singapore)

The Saihan district of China's Hohhot city in Inner Mongolia province was found to have misused CNY125 million urban renewal funding to pay its hidden debt, the 21st Century Business Herald reported citing an audit by the central government. The case reflects the growing fiscal pressure of local authorities in China, the newspaper said. Saihan's budget report disclosed CNY3.3 billion outstanding debt at the end of 2020, though it didn't disclose the amount of hidden debt, the newspaper said. Local authorities are pressured by declining revenue as the central government implements tax-reduction policies, and due to heavy reliance on incomes from land sales, the Herald said.

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