Cash transfers to local governments put under new restrictions

Sixty percent of cash transfers from China’s central government to regional authorities will now be done by general rather than special transfers in an apparent effort to cut wasteful spending, Reuters reported, citing a document from the State Council. The document, dated December 27 but only made public on Monday on the cabinet’s official site, gave no date for when the new rule would go into effect. The move will ostensibly make it harder for regional governments to get cash transfers, which they often abuse by submitting unnecessary investment projects for approval of disbursement via special transfer.