Key facts
- Nearly 28 billion yuan ($4.12 billion) in agricultural funds was misappropriated by local governments.
- The diverted funds were used to pay down local government debts.
- Funds were also used to support state-owned enterprises and cover administrative expenses.
- The findings were part of a national audit report delivered to the National People's Congress.
A sweeping national audit has uncovered that local governments across numerous Chinese counties have diverted nearly 28 billion yuan ($4.12 billion) in agricultural funds. The misappropriated money was reportedly used to service mounting debts, bolster state-owned enterprises, and sustain basic administrative functions.
The findings were disclosed on June 23 when Auditor General Hou Kai presented the State Council's audit report concerning the execution of the 2025 central budget and other fiscal matters to the Standing Committee of the 14th National People's Congress.