Latest News:  

English>>China Politics

Audit targets local government debt

By WEI TIAN (China Daily)

08:09, July 29, 2013

Move 'aims to reveal mounting risks and pave way for reform of finance system'

The National Audit Office declared on Sunday that it will start a nationwide assessment of local government liabilities, which will address concerns about rising debt from overambitious development projects.

The announcement was made following Chinese media reports that the State Council has made the audit campaign one of its "urgent" tasks, and that all government auditors are being given crash training so they can start the audit as early as next week.

Their work is expected to update China's local government debt figures, which stood at 10.7 trillion yuan ($1.75 trillion) by the end of 2010.

By comparison, China's GDP was close to 52 trillion yuan in 2012.

But an estimate by the International Monetary Fund last month put China's total government liability, including government-led infrastructure development projects, in excess of 45 percent of the country's GDP.

Experts said the new audit aims to reveal mounting risks from rising local government debt, which has sparked fears of a hard landing for the economy amid a continuous slowdown.

In the meantime, the effort will pave the way for a possible overhaul of the public finance system to build a healthier and more responsible financial administration, they said.

In the short term, the move will provide decision-makers with clear options, said Zhao Quanhou, head of financial research at the Fiscal Science Research Center affiliated with the Ministry of Finance.

If the results turn out to be good, he said, new policies could loosen local government financing, as the economy still yearns for capital to restore growth.

"But given local government debt conditions in recent years, the results are unlikely to be promising," he said.

In a June report, a survey of 36 provinces and cities showed debt levels expanded 13 percent over the past two years.

Du Xiangqian, a government auditing researcher, said the 2011 audit work was completed and made public within five months, and this year's project may require about the same time.

【1】 【2】

We Recommend:

A forward thrust in Sino-US relations

New media tells'Chinese foreign affairs story'

Xi, Obama meet for first summit

No tolerance for rogue behavior on dispute

Poverty elimination remains important task

China is victim of hacking attacks

Email|Print|Comments(Editor:ZhangQian、Yao Chun)

Leave your comment0 comments

  1. Name


Selections for you

  1. Soldiers leave for "Peace Mission 2013" drills

  2. Weapons bay of China's J20 fighter revealed

  3. DPRK marks 60th anniv. of armistice

  4. Droughts affect over 8.37 mln in SW China

  5. People cram in water pool to cool off

  6. A fisherman family's life aboad d& dreams ashore

  7. Summer migratory birds in Poyang Lake

  8. Thousand Island Lake in E China

  9. Alibaba, e-concierge, soon at your service

  10. Cheap drug expected after GSK case

Most Popular


  1. China's economy will continue to prosper
  2. Western countries face dilemma on Syrian conflict
  3. Reform, not incentives, to drive expansion
  4. Lenovo reigns as king of the hill
  5. Small exporters need more help to pass tough times
  6. Debate on internationalizing education
  7. Bo Xilai indicted for corruption
  8. China rules out provisional economic stimulus plan
  9. Removal of deposit rate ceiling not imminent
  10. Feeble Japanese-Philippine 'axis' doomed

What’s happening in China

Working under 40 degrees Celsius

  1. Beijing's big dog ban raises debate on ownership
  2. NE China nursing home blaze confirmed as arson
  3. Droughts affect 1.15 mln central Chinese
  4. Amway point finger at dealer of woman's death
  5. Offering bus seats optional: survey