China weathered the global financial crisis better than most, thanks to a large and timely stimulus. This stimulus, however, was mainly in the form of off-budget infrastructure spending and thus not visible in the headline fiscal data. We construct a time series for the augmented fiscal deficit and debtaaugmented to include off-budget activityathat better illustrates the counter-cyclical role of fiscal policy. The results also show that the augmented fiscal deficit and debt are both considerably higher than the headline government data suggest. Nonetheless, at around 45 percent of GDP, the augmented debt is still at a manageable level.232 (Washington: International Monetary Fund. GFS Yearbook, 2012, Available via the Internet: http://www.imf.org/external/pubs/cat/ longres.aspx?sk=25989.0 International Monetary Fund, 2001, aGovernment Finance Statistics Manual 2001.
|Title||:||Fiscal Vulnerabilities and Risks from Local Government Finance in China|
|Author||:||Ms. Yuanyan Sophia Zhang, Mr. Steven Barnett|
|Publisher||:||International Monetary Fund - 2014-01-14|