Beijing: Angry Chinese authorities have seized up to one trillion yuan ($157 billion) from local governments who failed to spend their budget allocations, sources said, as Beijing seek ways to stimulate economic growth which is at its slowest for 25 years.

The huge underspend, linked to officials’ reluctance to spend on big-ticket projects while authorities crack down on corruption, supports the argument of some economists that Chinese state investment has grown too slowly this year.

“In the past, local governments had asked for money. Money was given, but no one acted,” said one of two sources. They declined to be named as they are not authorised to speak to the media.

“Investments were not realised, and the money will be reallocated,” added the source, an economist. He did not elaborate on how the funds would be spent.

The repossessed money will pay for other investments, said the sources, as economic growth looks increasingly likely to fall below seven per cent.

Lacklustre spending growth could be especially punishing for China, as investment is seen by some Chinese government economists as the best way to shore up activity in the short-term.

One trillion yuan of unspent funds is equivalent to about six per cent of China’s projected total government spending for 2015.Finance Ministry was not available for comment.

As part of sweeping reforms proposed by the Chinese government at the end of 2013, China is pursuing its boldest ever anti-graft campaign that has felled a powerful ex-domestic security chief among others.

While the campaign has been a hit with the public, it has also had unintended consequence of scuppering investment as fearful officials eager to stay out of trouble resort to early retirement or dither over approving major projects.