(TibetanReview.net, Aug16’20) – China under President Xi Jinping appear to have decided to focus central government funding in Tibet more on infrastructure and development projects meant especially to strengthen internal stability and external security, leaving the local government to raise its own resources for the other governmental purposes.
As a result, being apparently faced a fund crunch, the local government of Tibet Autonomous Region (TAR) has, for the first time, been driven to issue bonds to raise money for building rural roads, for public health, and so on, according to China’s official Xinhua news agency Aug 15.
The report said the TAR government had issued 8.8 billion yuan (about US$ 1.27 billion) worth of local government bonds on the Shanghai Stock Exchange.
It is the first time that the TAR government bonds have been issued on the exchange market, the report noted.
The regional government has issued 6.2 billion yuan in general bonds and 2.6 billion yuan in special bonds on Aug 12.
The report said the general bond funds were mainly used in the construction of roads in rural areas. It added that funds related to the special bond will be utilized in public health, urban development, shantytown renovation, and environment protection.
They will provide significant financial support for stabilizing investment, strengthening weak links and improving people’s welfare, the report noted.
The issuance had 10-year, 15-year and 20-year bonds, the report said.