BEIJING: China should continue to improve institutional systems to prevent and resolve local government debt risks, the country’s vice finance minister said Saturday.
Xu Hongcai said at a forum in Beijing that China needs to strike a balance between promoting investment and preventing risk, including determining the size of new public debt, and preventing excessive growth of government debt. affect budgetary operations.
The ministry will work with the National Development and Reform Commission to strengthen the management of investment areas for special bonds, including prohibitions on funding vain projects and projects that are not in the public interest, a- he declared.
China will also crack down on illegal and improper debt raising and misappropriated debt financing, he said.
The call for improved risk controls comes as China plans to accelerate the issuance of special local government bonds this year to help boost investment and cushion a slowing economy.
(Reporting by Rong Ma in Beijing and Andrew Galbraith in Shanghai; Editing by Simon Cameron-Moore)