Fiscal reforms to ease local govt debt pressure

Repayment pressure for local governments will escalate this year, as more debt matures, a top government official said on Tuesday.

Vice-Minister of Finance Wang Bao'an said in a recent meeting with finance ministry officials that nearly 21.89 percent of the outstanding local government debt will mature by the end of this year. An official survey last year indicated that China's local government debt stood at 17.9 trillion yuan ($2.86 trillion) by the end of June 2013.

Though the debt repayment levels are slated to go up this year, the overall numbers are still under control, Wang said adding that at no point would the government lower its guards. "Overcapacity and accumulation of local debt are key issues for the central government, as both could spiral into a financial crisis if left unchecked," he said.