Efforts encouraged to draw down local debt

China will further urge local governments to take firmer responsibility for preventing and defusing debt risks, and will curb growth of debt while reducing old ones through mechanisms including regular inspections and lifelong liability, the Ministry of Finance said in the half-year budget execution report published on its website Wednesday.

Central authorities will supervise and urge local governments to coordinate various funds, assets, resources and supporting policy measures, as well as require more efforts from cities and counties, to properly deal with existing hidden local government debt, optimize debt terms, reduce interest burdens, and gradually ease and defuse debt risks.

Coordination among different government departments will be strengthened, and regular supervision and evaluation will be reinforced to decisively crack down on growth of new hidden government debt, while steps will also be steadily taken to promote unified oversight on the issue and the establishment of a unified, long-term regulatory system.

The ministry also said it will ramp up effective implementation of a proactive fiscal policy and support the real economy to grow.

It will improve the system for financial transfer payments, rationally accelerate fiscal expenditure and promote the delivery of fiscal and tax policies. It will also guide small and midsized enterprises to develop while focusing on promoting the high-quality development of the manufacturing industry through strengthening innovation-driven growth and increasing support for breakthroughs in core technologies.

Efforts will also be made to effectively safeguard and improve people's livelihoods and tighten financial discipline.