According to the China Central Economic Work Conference, China’s highest-level economic conference, held from Dec 10 to 13, one of the top six priorities for next year will be the control of local government debts.
The third item of the six reads, “Third, focus on prevention and control of debt risk. As an important task of economic work, take control and resolve local government debt risk. Combine short-term response and long-term institution building and defuse local government debt risk. Strengthen the standardization of the source of risk, categorize local government debts, put them under budget management, and tighten up government borrowing programs. Assign responsibilities and hold officials accountable. Governments at provincial, district and city levels should be responsible for their respective local debts, for strengthening education, and for tests, so as, ideologically, to rectify incorrect performance-driven behavior.”
Source: People’s Daily, December 13, 2013