Local governments in China are..........>

CHINA PRESS: Local governments in China are required to report the amount of

fiscal funds they need and how they will be used to the Ministry of Finance by

the end of June, 21st Century Business Herald reported. Following these reports,

the Ministry would then assign the CNY2 trillion of funds by expanding the

deficit and issuing special Treasury bonds to local governments as soon as

possible, the Herald reported citing unnamed sources. Of this CNY2 trillion,

CNY1 trillion from the expanded deficit can be used for investment or general

government spending, while the balance of CNY1 trillion from the issuance of

Treasury bonds should focus on infrastructure investment. Local governments are

allowed to use part of the funds from special Treasury bonds to support low

income earners and difficult enterprises and pay wages to civil servants, the

newspaper said citing a source close to the Ministry of Finance.