China Boosts Local Government Debt Ceiling to Address...
China News
November 12, 2024
China has unveiled a fiscal policy to ease repayment strains on local governments by addressing hidden debt. Finance Minister Lan Foan announced a plan to reallocate over $110 billion annually from local budgets through 2028, replacing $560 billion of hidden debt. Meanwhile, $280 billion linked to shantytown reconstruction projects maturing post-2029 will adhere to existing contracts. This move underscores China’s commitment to mitigating fiscal risks.