31 provinces in China have recently disclosed the 2016 budget implementation, revealing a number of problems in the local economy. First, the regional financial capacity gap has widened. Second, the local fiscal revenue growth continues the trend of the previous two years. Third, a large number of provinces are experiencing economic and financial difficulties. Overall, most regions' fiscal revenue is not optimistic, and this is indeed worrisome for China’s economy in 2017 as it is related to livelihood, public service, the effectiveness of the governance of local governments and their relationship with the Central Government.