The budget law revision to the lifting of the ban Chinese local debt

xinhuanet.com Beijing 21 April, although the local government debt problem has become one of the major risks faced China economic development, but the 21 day to submit the budget law twelve session of the eighth meeting of the NPC Standing Committee to consider the draft amendment to the three reviewers, to allow local government debt is a breakthrough, but many "firewall" clause the new legislature highlight determined against debt risks.

after two years, the budget law has 20 year old in the third campaign to modify. Whether to allow the local government debt is the focus and difficulty of the bill amended.

Regulation of

Chinese current budget law, "in addition to the provisions of laws or the State Council, the local government may not issue local government bonds." The budget law the draft amendments to the first and two reviewers, retain existing provisions.

in the Chinese urbanization process speed background, in the face of local construction investment boom, the current provisions has stuck to the local government bonds gate, but not in local government debt in the footsteps. In the past few years, Cheap basketball Jerseys implicit government debt on international China local swelling and shadow banks, seen as one of the economic risk China.

Three reviewers of the submitted

summary of the views of all parties, clearly stipulates: "part of the funds required for general public budget of province, autonomous region or municipality directly under the central government, approved by the State Council in construction investment, can be determined by the State Council, limits, through the issuance of local government bonds of debt financing."

"this means that the local government borrowing opening, let go of this but there are conditions and strictly limited." Professor Liu Jianwen of Peking University School of law, said.

the current release of local government bonds is represent the general trend, the eighteen plenary session decided to release to the local government bonds "ban" signal, such as the integration of urban and rural development in the sound system and mechanism mentioned "to allow local governments to issue debt and so on many kinds of ways to broaden the financing channels, the building of the city."

Vice Finance Minister

Liu Kun also proposed on how to solve the problem of urbanization sources of funding recently, the Ministry of finance will increase the focus of local government Cheap snapback hats bonds in support of urbanization construction, to give the local government borrowing authority, to establish a diversified financing mechanism through the improvement of the existing local government debt system etc..

but let the local debt, will bring the problem Cheap college football jerseys of how to prevent financial risk. Audit of local government debt by the end of 6 family shows, 2013, Chinese province city county three class government has responsibility to repay the debt balance of 10.58 yuan, increased 3.87 yuan more than the end of 2010, the average annual growth of 19.97%.

signs, the current China local government debt risk still can not be ignored, the burden of local and industry more debt, local cheap customized jerseys government debt on the land transfer income more and more rely Cheap NBA Hats on, some localities and units also exposed the illegal financing, the use of local debt fund phenomenon, especially after the bond market ultradian debt defaults are intensified the breach of the local debt worries.

Liu Jianwen >