Fiscal Policy

Local government revenue growth slumps in January

China's local governments suffered last month a slump in budgetary revenue growth, raising further doubts over the ability of local governments to service their debts and drive fixed asset investment projects. We think that constrained local budget revenue growth puts extra pressure on state banks to roll over local government debt, hampers fixed asset investment initiatives at the local level and obliges Beijing to keep liquidity policy in a loosening trend for as long as inflation permits.

Utility prices climb

Artificial suppression of key utility prices – including water, electricity and gas – has been part of the secret of China’s industrial success. But now things are changing.

What's in store for 2012?

Discussions at this week's Central Economic Work Conference hint at things to come for economic policy in 2012.

Highway loans are triggers for LGFV defaults

Short-term loans issued to finance longer-term projects in the heady days of China's 2009 stimulus package are returning to haunt the banks.

Income tax cuts to have limited effect

Beijing is expected to lose Rmb 160bn in tax revenue following implementation of new income tax rules on September 1.

Income tax reform postponed in response to public opinion

Commentators discuss China's new income tax system and the delay in its implementation.

Congress presents picture of political poise despite pressures

So far, the image presented at the ongoing session of National People's Congress is of a competent government planning bold steps to meet its challenges.

Taxes overhaul

Scholars debate rumours that Beijing will make key changes to China's tax system as part of the upcoming 12th Five Year Plan.

Investment to stay hot

A confluence of factors suggest that fixed asset investment in China will remain buoyant even after Beijing's official stimulus programme is phased out from late this year.

Balancing inflation, overcapacity and asset bubbles. Is that all?

Peering into our crystal balls for 2010, things appear bleak or complex, but there are at least some silver linings.

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09 Feb 2012

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Europe's financial problems and the US's slow recovery cast a shadow over prospects for the world economy. In this gloomy scenario, growth in China, India, Brazil and other emerging markets is certainly a bright spot. But how badly exposed is the developing world of the south to the problems of debt-ridden north? In a special report, a team from FT Brazil Confidential interviewed GlobalSource Partners local experts from 16 emerging economies.

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