employees salary deducted
According to a media report, millions of Chinese teachers and officials have been asked to return the bonus they were given last year to the Communist Party, because the country’s economic condition is not good. According to the Hong Kong Post report, local governments across China paid a bonus of 20,000 yuan for the first quarter of 2021 to civil servants and teachers of public institutions in Henan, Jiangxi and Guangdong provinces, but now the government has asked That bonus has been suspended and all the employees and officers are ordered to return the bonus money to the government immediately.
Return Bonus to Employee in 10 Days
According to The Hong Kong Post, civil servants’ bonuses have been suspended in Shanghai, Jiangxi, Henan, Shandong, Chongqing, Hubei and Guangdong. At the same time, the report said that China’s eastern province of Jiangxi and Nanchang Water Resources Bureau has ordered the bonuses paid to their employees in June 2021 to be paid within 10 days. At the same time, Dexing city officials have ordered the teachers to return the bonus they had received immediately. According to The Hong Kong Post, recently, salaries of government employees of many departments in China have been cut by 20 to 25 percent.
The financial condition of the state governments is also bad.
The Hong Kong Post has also reported that the financial situation of local governments in China has deteriorated significantly. Especially since the first half of 2020, the state governments are facing economic crunch. All provinces, except Shanghai, reported fiscal deficits, meaning they spent more than they earned. According to official figures from the Chinese government, the deficit for provincial governments increased by 30 percent to 3.4 trillion yuan in the first half of 2020. At the same time, provinces such as Henan, Sichuan and Yunnan reported fiscal deficits of more than 250 billion yuan.
Heavy debt on the Chinese government
While the overall debt situation of the Chinese government is a matter of concern.
According to The Hong Kong Post, China’s non-financial-sector debt (by the government, corporate and domestic sectors) reached a record high of 272 percent of China’s gross domestic product (GDP) in 2020. According to the HK Post report, in the third quarter of 2021, this number had increased marginally to 265 per cent, but this is likely to adversely affect the country’s growth.
The crisis increased due to zero covid policy
Analysts say that China has been lying to a great extent about its economic situation and if there is a report of economic crisis in China, it means that the situation has become serious. At the same time, experts say that due to the Zero Kovid policy in China, a lot of strictness is being taken and lockdown has to be imposed in most parts of the country. Apart from these, the real estate business in China has fallen badly and the biggest company of China’s real estate industry is on the verge of sinking and this can also be a reason behind the crisis on China’s economy.