BEIJING, March 5 -- China will strengthen management of local government debt and strictly prevent and control risks, according to a draft budget report available to media before the annual parliamentary session Thursday.

The country vowed to establish a standardized mechanism for debt financing by local governments, which features both general debt and special debt, and to improve the market-based pricing mechanism for local government bonds, the report read.

The government will impose ceilings for local government debt, and place local government debt under budgetary management for general public finance and government-managed funds, it read.

To contain fiscal risks, warnings will be given to regions where high risk is detected, and local governments will be urged to set up crisis management mechanisms and formulate contingency plans, according to the report.

A system for releasing information on local government debt will also be established, with regular public disclosures, it said.

The country also promised to make appropriate arrangements for handling outstanding debts and follow-up financing for on-going projects.