Reuters out with an exclusive
- angry Chinese authorities have taken back up to yuan 1 trln for local govts who have failed to spend their budget
- the huge underspend is linked to officials' reluctance to spend on big-ticket projects while authorities crack down on corruption
Reuters sources close to those in central govt, including an economist say:
" In the past local govt had asked for the money. Money was given but no one acted. Investments were not realised and the money will be re-allocated"
"Due to the crackdown on corruption, most local officials have accomplished nothing"
Yuan 1 trln is equivalent to about 6% of China's projected govt spend for 2015 and highlights the double-edged sword of China's reforms
