China's debt risks are generally under control, and the debt risks of local governments are being effectively alleviated and managed following the introduction of a raft of effective policies, said a senior official.
The remarks, made by an official from the Office of the Central Committee for Financial and Economic Affairs, came after last week's tone-setting Central Economic Work Conference.
China's government debt ratio is around 70 percent, a relatively low level in the world.
For the next year, more proactive and impactful macro policies should be implemented to sustain the upward trend of the economy and create a favorable macro environment to guard against and defuse the debt risks of local governments, according to the official.
Efforts will be made to coordinate reforms on fiscal and taxation systems and place more fiscal resources at the disposal of local governments, so as to provide institutional support for defusing local government debt risks.
The official also pledged resolute measures to curb debt financing that violates laws or regulations, cautioning that new illegal debts must be avoided while defusing existing debt risks.
The meeting urged enhancing the innovation capabilities and leading role of areas with economic development advantages, supporting major economically developed provinces to play major roles, and encouraging other regions to leverage their local conditions and advantages.
To support major economically developed provinces in better shouldering greater responsibilities, China will expand the usage scope of special bonds, delegate these provinces with greater power in areas such as project declaration and fund allocation, and step up support to them in the allocation of factors such as land, energy and data.
These provinces will also be granted more opportunities to conduct preliminary trials on reform and opening up, the official added.
China's local debt risks being effectively alleviated: official
