(Yicai Global) July 25 -- A shortage of the state's fiscal funds leaves no room for the reduction of highway tolls, China's Ministry of Transport said on July 21.

Toll-collecting companies will expand the possibility for exemption, the ministry added, considering the effects of the policy, the lawful interests of toll road investors, the government's ability to offer fiscal compensation, and the balance between income and expenses on China's toll roads.

Toll-road authorities support the rapid development of society and the economy, especially in the logistics industry, but are burdened with increasing debts and a hard time raising funds, the ministry said.

The road itself, total investment, local price indexes, loan repayment plans, investment redemption schedules, traffic volume and other factors all affect the price of tolls in line with the Regulation on The Administration of Tollways, it added. They are approved by provincial governments.

Given China's current situation, a reduction in price is not feasible, the ministry said.

When asked if small passenger vehicles could be exempt from tolls during Chinese holidays, the MOT said that it was not possible given current conditions. Companies investing in and operating toll roads are business entities responsible for their own profits and losses; for them to make further toll exemptions, the government must put compensation policies in place.  Local authorities nationwide are low on funds and these policies would be difficult to implement, the ministry added.

"There are no free roads anywhere in the world," said Yu Mingyuan, director of the development research center at the ministry's Research Institute of Highway, adding that upholding the current toll policy is both an objective need and a practical move.