The Ministry of Finance of China said that it will increase the amount of local government debt in 2024 in advance to reasonably ensure local financing needs.
According to the Securities Times website, the Ministry of Finance of China said on Friday (November 17) that in the first 10 months of this year, the new debt limits issued by the local area will issue special bonds for project construction within the approved new debt limit amount.3519.2 billion yuan (RMB, the same below, about S $ 656 billion), mainly used for municipal construction and industrial park infrastructure, social undertakings, transportation infrastructure, affordable settlement projects, agricultural and forestry water conservancy projects, etc.
The Chinese Ministry of Finance said that the next step will be increased to work hard to better play the role of special bonds.On the one hand, some new local government debt quotas will be added in 2024 to reasonably ensure local financing needs; on the other hand, strengthen government bonds, especially local governments, special bond management, and appropriately expand the area of special bonds and use it as project capital.
In response to the issuance of the Chinese government's earlier issuing 1 trillion yuan of bonds, the Ministry of Finance said that the National Development and Reform Commission and the Ministry of Finance in conjunction with relevant departments have established a working mechanism for the issuance of national bonds projects to jointly issue the issue of issuing government bonds.Various tasks; officials will also organize project declaration and review, issue notifications to localities, clarify the requirements of project declaration conditions, procedures, etc., and conduct review according to the local application project conditions.
Since the large -scale issuance of Chinese local governments borrowed the new and returned old special recycling bonds, the scale of the Chinese local government issued bonds in the first 10 months of this year has reached 8.6 trillion yuan, a record high, and the use is used. Among them, it is used.The special re -financing bonds that repaid the existing debt of local governments were issued rapidly, and 24 provinces disclosed a total of 104.31 trillion yuan of special bonds issued.
In order to alleviate the debt risks of the local government, the central government increased the fiscal deficit rate and issued bonds to help local governments for debt.
