1 Trillion for Highways in Second Half

China is planning to spend 1.8 trillion yuan for highways (1.65 trillion) and waterways in 2016, but only spent about 800 billion in the first half, leaving 1 trillion.

Rural roads receive about 600,000 yuan in subsidies per kilometer, with the rest coming from local government:
Funding rural roads, too, Yuyao City, Zhejiang Province new rural road construction management office Xuzhe Feng Master to the Economic Observer reported that the construction of one kilometer of rural roads, funding from all levels of financial subsidies of up to 600,000, and the rest by the town since chips.
Road construction is helping to prop up fixed asset investment growth:
This year from January to July waterway road fixed asset investment amount of more than 960 billion yuan, compared to the same period last year higher by 8.2%, in which highway construction investment was more than 800 billion yuan, an increase of 7%. The National Bureau of Statistics data released earlier in January-July growth rate of fixed investment forms a contrast, according to data from the National Bureau of Statistics show that from January to July investment in fixed assets (excluding rural households) reached 31.1694 trillion yuan, up nominal increase of 8.1% growth compared to January-June fell 0.9 percentage points.

General road investment has become the main force of the current highway investment.
Increasing fiscal burdens on local governments are taking a toll though:
Wang Libin to the Economic Observer newspaper said that local finance bears a greater proportion of the expenditure for highway construction.

According to Wang Libin introduction, an important impetus for China's transportation infrastructure that the vehicle purchase tax and fuel tax, and two special funds "road loans, repayment charge" mode of financing. And ordinary roads and highways is different, generally not ordinary road toll, which means it is difficult to attract social capital and through the use of loans financing the construction. Whether it is relying solely on fiscal spending or PPP mode, the lack of participation in social capital, whether ordinary roads investment boom can be sustained remains to be seen.

"If you increase the powers of local responsibility, property rights and the need to provide financial support by way of taxes and transfer payments." Yang Zhiyong said.
EO: 公路投资下半年要放1万亿 新“铁公基”助推中国经济

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