(MENAFN) As Beijing seek ways to stimulate economic growth, Chinese authorities have seized up to USD157 billion from local governments who failed to spend their budget allocations.
This firmly indicates government's corruption as they fail to spend cash on big projects, plus it supports the argument of some economists that Chinese state investment has grown too slowly this year.
USD157 billion of unspent funds is equivalent to about 6 percent of China's projected total government spending for this year, furthermore, the repossessed money will pay for other important investments.
Recent data showed that growth in investment and factory output both missed forecasts in August, suggesting that China needs to roll out more policy support to lift the world's second-largest economy.
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