The Chinese government faces a shortfall in revenue of about 6 trillion yuan ($895 billion) and is likely to increase its debt load to make up the funding gap, a report by CNBC said, citing analysts who said government revenue had plunged because of the crisis in the property sector and Covid lockdowns in Shanghai and many other cities.
It was “important to notice that the decline of fiscal revenue happened not only in cities under lockdown,” Zhiwei Zhang, the chief economist of Pinpoint Asset Management, was quoted as saying, adding that “many cities without Omicron outbreaks also suffered, as their economies are linked to those currently under lockdown. The economic costs are not limited to a small number of cities, it is a national problem,” the report said.
Read the full report: CNBC.
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