Page 117 - Low Carbon Development in China and India

that of the central government. As shown in Figure 2.4, the percentage
of fiscal expenditure of local governments in the combined fiscal
expenditure of central and local government has been increasing
in recent years, from 65.3 per cent in 2000 to 84.9 per cent in 2011.
The increasing expenditure–revenue ratio has constituted a certain
potential threat for the overall financing capacity and the default risk
of local governments.

Figure 2.3 Fiscal Revenue Percentage of the Central and Local Governments (1978–2011)
Source: National Bureau Statistics of China (2012).China Statistical Yearbook 2

Figure 2.4 Fiscal Expenditure Percentage of the Central and Local Governments (1978–2011)
Source: China Statistical Yearbook (2012)

Secondly, the pressure of increasing overall fiscal expenditure on
local governments to create a low carbon economy will present a big
challenge for future local governments also. Based on the current
statistical scope and available data (sorted on the basis of the data
derived from the China Statistical Yearbook 2012), we summarize the

82 Low Carbon Development in China and India