Fiscal gap widens as economy slows down

Local governments face large shortfall in revenue despite raking in land transfer fees

Despite a surge in local land sale revenue, governments in China still face a widening gap between revenue and spending, Finance Minister Lou Jiwei said on Wednesday.

"Fiscal revenue growth has slowed down, especially for the central government. The gap between fiscal revenue and expenditure remains prominent," Lou reported to the Standing Committee of the National People's Congress, the top legislature.