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As per a report in the South China Morning Post, 31 of mainland China’s provinces are faced with a deficit in terms of revenue for the first half of the year. Land sale revenue and tax revenue from corporations have taken a major hit. This has led to profit seeking tendencies by the local government.
According to a report from the China Youth Daily newspaper, truck drivers in the Chengwu county in Heze city in Shandong’s southwest, buy a “monthly pass” amounting to 1,000 or 2,000 yuan that provides them immunity from being fined for traffic violations until the pass expires. In 2021, Chengwu county collected 1.3 billion yuan in fiscal revenue, compared to an expenditure of 4.3 billion yuan.
Such tendencies have however come to the notice of the government who are trying to put an end to such practices.
Zhao Kezhi, China’s former public-secretary told his ministry to “resolutely rectify prominent problems such as profit-seeking law enforcement and illegal cross-jurisdiction law enforcement,” in 2021.
Chinese economist and former Premier for the Republic of China Li Keqiang said, “Local governments should tighten their belts, put existing assets to better use, maintain a balance between revenue and expenditure, and guarantee fiscal spending to ensure people’s livelihoods,” in August 2023.
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