Local governments struggle with less cash

Local authorities are struggling to balance a shrinking fiscal income with an increasing demand for government-led investment to maintain economic growth.

According to half-year data from local statistics bureaus, most local governments saw their incomes rise by more than 10 percent. The exceptions to that were Beijing, Shanghai and Zhejiang and Guangdong provinces, which reported single-digit growth.

Nationally, the fiscal revenues of local governments amounted to 3.2 trillion yuan ($500 billion) in the first six months, up 14.4 percent from the previous year, according to the Ministry of Finance. The growth was much lower than the 36 percent for the same period last year.