MNI BRIEF: Local Govt Finances To Improve In 2023 - Liu Kun

Local government finances will improve in 2023 as adjustments in epidemic control measures and growth policies lead to an economic recovery, said China's Finance Minister Liu Kun at a press conference on Wednesday.

Liu said local government debt was unevenly distributed with some regions facing pressure on principal and interest payments. He said Beijing had urged local governments to take responsibility to resolve systemic risk.

The finance minister said it was important for the scale of local government bonds to be reasonable this year, and to appropriately expand the scope of investment as a driving force in the economy. He said Beijing will continue to increase transfer payments from the central to local governments, and promote the expansion of social investment, and promote consumption.

He said the decline in local government revenue last year due to reduction in land sales was somewhat offset by a corresponding fall in expenses for demolition and re-settlement compensation.