2017年CRI Risk of gov't debt controllable in China: expert

 

China's National Audit¹ Office has released a new report on how budgets across China last year were managed.

The report is suggesting the overall risk in China's local government debt remains² controllable.

To find and solve problems, the National Audit Office selected and audited³ cities and counties in 16 different provinces where government debt has increased considerably⁴.

The Audit Office analysis is suggesting that as of the end of the first quarter of this year, the overall debt in the local governments which came under the audit remains controllable.

The report notes that although there was an 87 percent growth in overall debt, most of the increased spending has been put into projects to help develop society, which it says has helped create a level of stability in the Chinese economy.

Analysis also suggests the overall debt-to-GDP ratio among those cities and counties which were audited sits at around 70-percent.

Zhao Quanhou, head of the Financial Studies Center at the China Academy of Fiscal⁵ Science, says this figure is still relatively⁶ low compared with other major economies.

"70 percent is not high. Generally the ratio for government debt is running between 100 to 150 percent globally. From this perspective, the debt ratio of China's local governments isn't high comparied to other countries. Currently we are experiencing the peak of urbanization nationwide, which local governments are financially responsible for. Compared with other developed countries during the same phase, China's government debt ratio is actually quite low," Zhao said.

China's central government has been taking steps to ensure local government debt remains under control.

Central authorities began cracking down on illegal fundraising in 2012.

Authorities have been allowing local governments to issue their own bonds since 2015, but have maintained tight quotas⁷ on the amount they're allowed to offer to the market.

Steps have also been adopted to make budget management more transparent⁸, including increased risk assessments⁹ and tighter supervision¹⁰.

Zhao Quanhou says the moves have made local governments in China more accountable.

"If we take a look at these measures, firstly, local governments are authorized¹¹ to issue their own bonds; secondly¹², a management mechanism¹³ has been standardized¹⁴ to regulate the amount of debt they run; thirdly, an emergency debt repayment¹⁵ program has also been set up to reduce the likelyhood of defaults. Through these measures, local government debt is being properly managed," Zhao added.

On a national level, China recorded economic growth of 6.7-percent last year.

Wang Dehua with the Chinese Academy of Social Sciences says part of the reason behind the stable rate of growth is the way the central authorities prioritized spending.

"There were some interesting aspects behind how the central government formulated¹⁶ its spending in 2016. First of all, the central government adopted proactive fiscal policies. As an example, much of the deficit¹⁷ was used to reduce taxes and expenses for businesses to relieve the financial burdens they face. Secondly, funding for poverty alleviation¹⁸, education and science was raised. Thirdly, the central government became more streamlined in how it spent its money, and also sped up tax reforms in many areas," Wang noted²⁰.

The report from the National Audit Office also notes the steps being taken to streamline¹⁹ the country's state-owned enterprises, making them more lean and efficient.

State-run companies in China saw a combined profit increase of 1.6-percent last year, which is a sharp contrast to the 6.7-percent loss the SOE sector²¹ took through 2015.

1 audit   

v.审计；查帐；核对；旁听

参考例句：

• Each year they audit our accounts and certify them as being true and fair.他们每年对我们进行账务审核，以确保其真实无误。
• As usual,the yearly audit will take place in December.跟往常一样，年度审计将在十二月份进行。

2 remains   

n.剩余物，残留物；遗体，遗迹

参考例句：

• He ate the remains of food hungrily.他狼吞虎咽地吃剩余的食物。
• The remains of the meal were fed to the dog.残羹剩饭喂狗了。

3 audited   

v.审计，查账( audit的过去式和过去分词 )

参考例句：

• The accounts have to be audited by a firm of external auditors. 这些账目必须由一家外聘审计员的公司来稽查。 来自《简明英汉词典》
• E. g. few if any charities collection publishes audited accounts. 例如很少义款收集有公布经过查核的帐目。 来自互联网

4 considerably   

adv.极大地；相当大地；在很大程度上

参考例句：

• The economic situation has changed considerably.经济形势已发生了相当大的变化。
• The gap has narrowed considerably.分歧大大缩小了。

5 fiscal   

adj.财政的，会计的，国库的，国库岁入的

参考例句：

• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
• The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。

6 relatively   

adv.比较...地，相对地

参考例句：

• The rabbit is a relatively recent introduction in Australia.兔子是相对较新引入澳大利亚的物种。
• The operation was relatively painless.手术相对来说不痛。

7 quotas   

（正式限定的）定量( quota的名词复数 )； 定额； 指标； 摊派

参考例句：

• In fulfilling the production quotas, John made rings round all his fellow workers. 约翰完成生产定额大大超过他的同事们。
• Quotas of the means of production are allocated by the higher administrative bodies to the lower ones. 物资指标按隶属关系分配。

8 transparent   

adj.明显的，无疑的；透明的

参考例句：

• The water is so transparent that we can see the fishes swimming.水清澈透明，可以看到鱼儿游来游去。
• The window glass is transparent.窗玻璃是透明的。

9 assessments   

n.评估( assessment的名词复数 )；评价；（应偿付金额的）估定；（为征税对财产所作的）估价

参考例句：

• He was shrewd in his personal assessments. 他总能对人作出精明的评价。 来自《简明英汉词典》
• Surveys show about two-thirds use such assessments, while half employ personality tests. 调查表明，约有三分之二的公司采用了这种测评；而一半的公司则采用工作人员个人品质测试。 来自百科语句

10 supervision   

n.监督，管理

参考例句：

• The work was done under my supervision.这项工作是在我的监督之下完成的。
• The old man's will was executed under the personal supervision of the lawyer.老人的遗嘱是在律师的亲自监督下执行的。

11 authorized   

a.委任的，许可的

参考例句：

• An administrative order is valid if authorized by a statute.如果一个行政命令得到一个法规的认可那么这个命令就是有效的。

12 secondly   

adv.第二，其次

参考例句：

• Secondly,use your own head and present your point of view.第二，动脑筋提出自己的见解。
• Secondly it is necessary to define the applied load.其次，需要确定所作用的载荷。

13 mechanism   

n.机械装置；机构，结构

参考例句：

• The bones and muscles are parts of the mechanism of the body.骨骼和肌肉是人体的组成部件。
• The mechanism of the machine is very complicated.这台机器的结构是非常复杂的。

14 standardized   

adj.标准化的

参考例句：

• We use standardized tests to measure scholastic achievement. 我们用标准化考试来衡量学生的学业成绩。
• The parts of an automobile are standardized. 汽车零件是标准化了的。

15 repayment   

n.偿还，偿还款；报酬

参考例句：

• I am entitled to a repayment for the damaged goods.我有权利索取货物损坏赔偿金。
• The tax authorities have been harrying her for repayment.税务局一直在催她补交税款。

16 formulated   

v.构想出( formulate的过去式和过去分词 )；规划；确切地阐述；用公式表示

参考例句：

• He claims that the writer never consciously formulated his own theoretical position. 他声称该作家从未有意识地阐明他自己的理论见解。 来自《简明英汉词典》
• This idea can be formulated in two different ways. 这个意思可以有两种说法。 来自《现代汉英综合大词典》

17 deficit   

n.亏空，亏损；赤字，逆差

参考例句：

• The directors have reported a deficit of 2.5 million dollars.董事们报告赤字为250万美元。
• We have a great deficit this year.我们今年有很大亏损。

18 alleviation   

n. 减轻，缓和，解痛物

参考例句：

• These were the circumstances and the hopes which gradually brought alleviation to Sir Thomas's pain. 这些情况及其希望逐渐缓解了托马斯爵士的痛苦。
• The cost reduction achieved in this way will benefit patients and the society in burden alleviation. 集中招标采购降低的采购成本要让利于患者，减轻社会负担。 来自英汉 - 翻译样例 - 口语

19 streamline   

vt.使成流线型；使简化；使现代化

参考例句：

• We must streamline our methods.我们必须简化方法。
• Any liquid or gas passing it will have streamline flow.任何通过它的液体或气体将呈流线型的流动。

20 noted   

adj.著名的，知名的

参考例句：

• The local hotel is noted for its good table.当地的那家酒店以餐食精美而著称。
• Jim is noted for arriving late for work.吉姆上班迟到出了名。

21 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。