China rewards local gov't for successful economic transition

BEIJING -- China's central government announced plans Friday to reward regions that beat benchmarks in cutting overcapacity, budget management, encouraging public-private-partnerships(PPP), supporting employment and poverty relief.

Financial support and favorable policies will be granted to regions which make solid progress in such areas, according to a Ministry of Finance statement.

A special fund worth 100 billion yuan (about $14.5 billion) will be allocated to nine provinces, which beat government targets or fulfill tasks ahead of schedule in cutting overcapacity in steel and coal, the statement said.

Official data indicates that China has eliminated steel production capacity by more than 65 million tonnes and coal by over 290 million tonnes in the last year.

Also, a total of 10 provinces are scheduled to be awarded for better budget enforcement, budget openness and debt control.

For regions which take the lead in encouraging PPP projects, as ways to fund infrastructure projects and ease the debt burden on local governments, awards will be granted based on their investment scales.

Achievements in improving livelihoods, including supporting employment and relieving poverty, will also be rewarded through favorable policies.

The ministry pledged early allocation of funds and urged local governments to conduct inspections on their allocation.