(Yicai Global) July 1 -- The central government's CNY2 trillion (USD283.1 billion) stimulus package has begun to make its way down to Chinese county coffers, according to regional officials.

"We stayed up late last night, working overtime to distribute the funds that the central government granted to the counties," an insider at a municipal finance department told Yicai Global this morning.

Regional administrations have had less to spend as China is looking to cut CNY2.5 billion in taxes and fees to stimulate more business amid the Covid-19 pandemic. But at the same time, they are expected to pour more money into ensuring employment and industrial production.

The central government decided during this year's Two Sessions that it will provide Chinese counties with CNY2 trillion in funds, and part of that in bonds. Hence, it created a special transfer mechanism, aimed at making sure that the money reaches the numerous localities that are smaller than provinces.

The process was quite fast as the political meetings where the decision was made ended just about a month ago, Shi Zhengwen, professor at China University of Political Science and Law, said to Yicai Global. Before the new payment system, it took at least two months or even half a year to executive a transfer between these parties, Shi added.

Several officials confirmed to Yicai Global that their counties had received some of the funds yesterday. In eastern China, one financial worker said that the local government had logged more than CNY200 million (USD28.3 million).

"We worked overtime through last night because the regulators had required us to allocate the funds before 9.00 a.m. this morning and China’s Ministry of Finance will oversee where the money goes," an official in a county in western China told Yicai Global.

The finance ministry has drafted requirements regarding information disclosure and accountability for the receivers to make sure that the assets are used the right way. A finance department in Jiangsu province said that the money will be spent toward three goals; reducing taxes and fees, protecting people's livelihoods, and maintaining residents' financial security.

Besides those three categories, Jiangsu province's government bonds ought to finance major transportation infrastructure projects such as high-speed railways and highways, the person added.

Editor: Chen Juan, Emmi Laine