Among the three press conferences held on Tuesday, the Ministry of Finance caught the most attention of overseas media as local government debt is one of the most closely watched financial problems in China.
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Finance Minister Xiao Jie attends a press conference in Beijing on March 7, 2017. [Photo/Xinhua] |
Local government debt
China will strictly control local government debt quotas and step up checks on illegal debt guarantees, finance minister Xiao Jie said on Tuesday.
Government debt risks are generally under control, Xiao said at a news conference during the annual meeting of parliament.
China will continue a debt-swap program for local governments to help contain debt risks, Xiao said.
--Reuters
Hong Kong's Hang Seng index rose as China's finance minister expressed confidence over the government's ability to handle rising levels of debt.
--AP
Budget deficit
China's budget deficit will grow in 2017 to fund tax reduction, expenditures and spending in key areas, and the addition amount will be in proportion with the projected rise in gross domestic product, he [Finance Minister Xiao Jie]said.
Xiao said China is able to control local debt levels, adding the central government debt ratio, which was 36.7 percent last year, won't change much this year.
--Bloomberg
Green energy cars
China has recovered 2.3 billion yuan (S$470.2 million) from companies that cheated a subsidy program to promote green energy cars, the country's Finance Minister Xiao Jie told a briefing on Tuesday.
China's central government has spent billions in subsidies to aggressively promote battery electric and plug-in hybrid cars, aiming to cut urban air pollution and encourage domestic car makers to leapfrog global competitors in automotive technology.
--The Business Times
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