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China to revise law for tighter scrutiny of govt debt

Published 11/01/2024, 01:46 AM
Updated 11/01/2024, 01:50 AM
© Reuters. Chinese Finance Minister Lan Foan attends a press conference on the sidelines of the National People's Congress (NPC), in Beijing, China March 6, 2024. REUTERS/Tingshu Wang/ File Photo
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BEIJING (Reuters) - China aims to step up supervision of government debt and plans to revise the law to do so, a spokesperson of the legislative affairs committee of the National People's Congress (NPC) said on Friday.

The changes proposed by the NPC's standing committee will require annual progress reports on debt management work from the cabinet and local governments, the spokesperson, Huang Haihua, told reporters.

The committee "should supervise government debt and establish a sound reporting system for government debt management," Huang said.

Draft amendments are set to be discussed when the standing committee meets from Nov. 4 to Nov. 8, Huang added, aiming to expand its oversight authority over government debt management, as well as financial and economic work.

Last month, Finance Minister Lan Foan said China would "significantly increase" government debt and support consumers and the property sector, but gave no details of the scale or timing of the fiscal measures.

Reuters reported that China is considering approving next week new debt issuance of more than 10 trillion yuan ($1.4 trillion) to tackle hidden local debt, fund buybacks of idle land and reduce a giant inventory of unsold flats, with decisions expected by the end of next week's meeting.

© Reuters. Chinese Finance Minister Lan Foan attends a press conference on the sidelines of the National People's Congress (NPC), in Beijing, China March 6, 2024. REUTERS/Tingshu Wang/ File Photo

The standing committee of the National People's Congress, or China's parliament, will also supervise the financial and economic work of the cabinet and local governments and review reports on fixing problems identified in audits, Huang added.

($1 = 7.1220 Chinese yuan renminbi)

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