1/6
According to Caixin, "China has condemned a city government in the northern province of Hebei for arbitrarily fining and collecting fees from thousands of businesses to fill the hole in its coffers".
caixinglobal.com/2021-12-23/cas…
According to Caixin, "China has condemned a city government in the northern province of Hebei for arbitrarily fining and collecting fees from thousands of businesses to fill the hole in its coffers".
caixinglobal.com/2021-12-23/cas…
2/6
The Bazhou government is being criticized on the grounds that randomly charging fees and penalties simply to bridge their fiscal gap "has undermined market confidence and the people’s livelihood."
The Bazhou government is being criticized on the grounds that randomly charging fees and penalties simply to bridge their fiscal gap "has undermined market confidence and the people’s livelihood."
3/6
While this may seem reasonable in principle, it sidesteps altogether what I suspect is a much larger, systemic problem, and one that affects a lot of local governments besides that of Bazhou.
While this may seem reasonable in principle, it sidesteps altogether what I suspect is a much larger, systemic problem, and one that affects a lot of local governments besides that of Bazhou.
4/6
As Caixin goes on to explain, "the case reflects the struggles of some local governments in making ends meet, as slowing economic growth and the troubled property market have bitten into fiscal revenue, especially that from land sales."
As Caixin goes on to explain, "the case reflects the struggles of some local governments in making ends meet, as slowing economic growth and the troubled property market have bitten into fiscal revenue, especially that from land sales."
5/6
For many local government it is damned if you don't and damned if you do. They will be criticized for failing to meet their spending and growth obligations, but also criticized for taking the necessary steps to do so.
For many local government it is damned if you don't and damned if you do. They will be criticized for failing to meet their spending and growth obligations, but also criticized for taking the necessary steps to do so.
6/6
But between rising spending commitments "to maintain social stability", falling revenues, and restrictions on their ability to increase their borrowing further, in at least some cases something will have to give.
But between rising spending commitments "to maintain social stability", falling revenues, and restrictions on their ability to increase their borrowing further, in at least some cases something will have to give.
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