The Standing Committee of the National People's Congress approved an increase of 6 trillion yuan in the local government debt limit to replace existing hidden debts

According to a press conference held on the 8th during the 12th meeting of the 14th National People's Congress Standing Committee, the meeting voted to pass the "Resolution on Approval by the Standing Committee of the National People's Congress." The proposal suggests that in order to implement the decisions and deployments of the Central Committee of the Communist Party, on the basis of solidifying local primary responsibilities, it is recommended to increase the local government debt limit by 6 trillion yuan to replace existing hidden debts.

Xu Hongcai, Deputy Director of the Financial and Economic Committee of the National People's Congress and Director of the Budget Work Committee of the National People's Congress Standing Committee, introduced at the press conference that the proposal suggests that to facilitate operations and to realize the policy effects as soon as possible, the new debt limit will be entirely arranged as special debt limits, approved in one go and implemented over three years. According to this arrangement, by the end of 2024, the local government special debt limit will increase from 29.52 trillion yuan to 35.52 trillion yuan.

Xu Hongcai stated that the proposal has been approved by the National People's Congress Standing Committee, and the Ministry of Finance of the State Council will issue regional limits as soon as possible according to procedures. Local governments will carry out bond replacement work in accordance with the law, and the people's congresses at all levels and their standing committees will perform supervision work according to the law. (End)