By the end of 2012, the combined liabilities of 36 of the most indebted local governments totaled roughly ¥3.8 trillion ($620 billion), up nearly 13% from 2010. Furthermore, a large proportion of the credit was invested in the overheated real-estate sector, as well as in infrastructure projects with low rates of return, creating large-scale structural overcapacity that has undermined the efficiency of investment and resource allocation, and contributed to the structural mismatch of fiscal resources.