China will release funds to local govts more quickly to boost economy

China will speed up the release of special funds to local governments to support the economy, Vice- Finance Minister Xu Hongcai told reporters on Wednesday.

The government has said it would set up special transfer payments of 2 trillion yuan ($289.72 billion) from special treasury bonds and an increased budget deficit to local governments.

“The implementation of specific policies and measures will have a positive impact on investment, consumption as well as imports and exports,” Xu told a briefing.

Of the 2 trillion yuan, 1.7 trillion yuan will be allocated to local governments after deducting 300 billion yuan for supporting tax and fee cuts this year, Xu said.