Municipalities receive aid from Beijing

China’s Ministry of Finance is tapping the 2023 budget to help struggling local governments. This is part of efforts to prevent a crash of the economy in the wake of the country’s Covid restrictions. Under the aid program, ¥400 billion (€55 billion) will be injected, reports business portal Caixin. The background is a crash in tax revenues due to Covid aid. The goal is to close „a gap between tax revenues and necessary spending,“ Caixin quotes from a ministry statement.