In a landmark move, China’s State Council presented its inaugural report on government debt management to the National People’s Congress (NPC) on January 10, 2024. Finance Minister Lan Fo’an, speaking on behalf of the State Council, disclosed that China’s statutory government debt surpassed 70 trillion yuan ($9.8 trillion) by the end of 2023.
The report, a significant step towards fiscal transparency, revealed a total government statutory debt balance of 70.77 trillion yuan ($9.91 trillion). This figure comprises 30.03 trillion yuan ($4.20 trillion) in national debt and a staggering 40.74 trillion yuan ($5.70 trillion) in local government debt, indicating that local obligations outweigh central government debt.
Based on China’s 2023 GDP of 126.06 trillion yuan ($17.65 trillion), the government debt-to-GDP ratio stands at 56.1%. The national debt is primarily domestic, with 29.70 trillion yuan ($4.16 trillion) in internal debt and 334.6 billion yuan ($46.84 billion) in foreign debt. Local government debt is split between 15.87 trillion yuan ($2.22 trillion) in general debt and 24.87 trillion yuan ($3.48 trillion) in special purpose debt.
The State Council outlined five key areas for strengthening debt management, including scientific determination of debt size and structure, reforms in national debt management, improved local government bond oversight, enhanced supervision processes, and increased cooperation with NPC oversight mechanisms.
Source: Central News Agency (Taiwan), September 15, 2024
https://www.cna.com.tw/news/acn/202409150091.aspx