Local governments have accelerated the speed of borrowing money and invested funds to major infrastructure projects to expand the steady growth of the government's effective investment.

The channels for local government borrowing money are basically issued local government bonds.According to public data, in the first eight months of this year, about 5.4 trillion yuan of local government bonds issued by the country, a year -on -year decrease of about 14%.

Overall, the speed of borrowing money this year is still slower than the same period last year, but the debt issuance in August has increased significantly.

Due to the accelerated issuance of new bonds in August, local government bonds issued more than 1 trillion yuan (approximately 1.2 trillion yuan) in August, an increase of nearly 1.5 trillion yuan from July.RMB 66 trillion.

In August, debt issuance is in line with market expectations.The central government has previously requested the progress of the issuance and use of special bonds many times.In the recent report of the implementation of China's fiscal policy implementation (hereinafter referred to as the report) in the first half of 2024, the Ministry of Finance required the next step to speed up the issuance and use of special bonds for local governments to form more physical workload.

Minsheng Bank Local bond issuance in the first half of the year, local bond issuance in the first half of the year.The progress is slow. In order not to affect the use of bond funds during the year, since June, various departments and regions have accelerated the deployment of local bond issuance. In August, local bond issuance increased significantly, which will support infrastructure investment rapidly.

Although the scale of local borrowing money has been lower than last year since this year, where the huge amount of funds over 5 trillion yuan spent still attracted the attention of the outside world.

Local government bonds are divided into new bonds and re -financing bonds according to their uses.New bonds are newly issued bonds, and funds are mainly used for the construction of major projects and people's livelihood projects such as infrastructure.The re -financing bonds are mainly used to repay the principal of the due debt, which belongs to "borrowing new and old."

Public data shows that among the 5.4 trillion yuan of government bonds issued by the local government in the first August this year, the re -financing bonds were about 2.3 trillion yuan, a year -on -year decrease of about 12%.New bonds were about 3.1 trillion yuan, a year -on -year decrease of about 16%.

It is not difficult to find that the local borrowed 5.4 trillion yuan of funds is more than 40 % to repay the old bonds, thereby alleviating the contradiction between local fiscal revenue and expenditure, reducing financing costs, and the balance of bonds in the balance of the stock government.The remaining funds are mainly used for major project construction.

Data from the Ministry of Finance shows that in the first 7 months of this year, the local government repaid the total interest of about 2.9 trillion yuan, of which the principal part mainly relied on the financing bond financing to repay.

Among the new bonds of 3.1 trillion yuan in the first eight months of this year, the new special bonds were about 2.6 trillion yuan, and the new general bonds were about 1.5 trillion yuan.

General debt funds are mainly used for public welfare projects without income, while special debt funds are used for public welfare projects with a certain income, and the income can cover principal and interest.At present, the new bonds are mainly concentrated on the new special bonds. Where did the special debt funds of about 2.6 trillion yuan in the first eight months of this year spent?

According to the data of corporate warning, about 33%of the new special debt funds in the first eight months of this year, about 33%invested in the infrastructure of municipal and industrial parks, and about 20%invested in railway, rail transit, toll roads and other transportation facilities.%Invested in the shantytown renovation, about 7%invested in medical care, and about 6%invested in agricultural forestry and water conservancy.

What is the effect of issuance of local government bonds, especially special debt issuance?

The relevant person in charge of the Ministry of Finance said publicly that in the first seven months of this year, the special bonds of new local governments were issued in various places, which were mainly used for the infrastructure, social undertakings, transportation infrastructure, and protection of municipal construction and industrial parks.The construction of the Party Central Committee and the State Council of Sexual Sanju Engineering has played a positive role in the strong foundation of special bond funds, supplementing shortcomings, benefiting people's livelihood, and expanding investment, and provided strong support for the high -quality development of the economy and society.

Fund such as special bonds, issuance of national debt, and long-term special national debt to promote infrastructure investment.

According to data from the National Bureau of Statistics, from January to July, infrastructure investment increased by 4.9%year-on-year, and the growth rate was 1.3 percentage points higher than that of all investment, which drove all investment growth by 1.0 percentage points.Among them, the water conservancy management industry investment, and the railway transportation industry investment has maintained a high increase in double digits.

However, some local audit reports have also disclosed some old problems existing in the management of local government special debt.If some special debt projects exaggerate the income when applying, some projects are slow, funds are idle, and funds are misappropriated. Some projects are not as expected as expected or even no income.

Caida Securities Deputy General Manager Hu Hengsong told the First Financial that some special debt projects faced the income from the preparatory stage, and the preliminary procedures for the project were incomplete.Some projects are not clear to the field. Because the preparations are not solid in the early stage, bond funds cannot issue funds in a timely manner, or their funds are idle, and some special bonds may be misappropriated, which will cause the final project income to fail to expect.

He suggested to improve the supervision system of special debt projects.For the establishment of a special account of project income, deposit the income formed by the project into a special account, and implement a special revenue special review mechanism to solve the problem of water injection and project income of project income less than expected.

In addition, Hu Hengsong suggested that special accounts can be established for issuing special debt funds, and special funds are only used for special debt projects that they declare, so that funds can "follow the project".For projects that do not meet the construction conditions, if the funds have been issued, the report should be reported as soon as possible. After the report is reported, it should be adjusted to other eligible projects to solve the problem of idle funds and misappropriation of funds.

The relevant person in charge of the Ministry of Finance said that in the next step, the MinistryThe use of benefits will drive to expand effective investment and promote the formation of physical workload as soon as possible.

The Ministry of Finance data shows that as of the end of July 2024, the balance of local government debt was about 42.8 trillion yuan.Among them, the general debt was 16.2 trillion yuan and the special debt was 26.6 trillion yuan.

The relevant person in charge of the Ministry of Finance recently stated that after all aspects of coordinated efforts, local government debt risks have been relieved as a whole, and the scale of hidden debt has gradually declined.In general, the risk of debt in my country's local government is generally controllable.