Scholar Says Current Regulatory Framework Can't Stop Local Debt Buildup

An increasingly visible evidence of renewed signs of local government debt indicates that the relevant documents in recent years and the debt management framework established by the new budget law are still inadequate. If the capital budget process and the comprehensive financial commitment control system are not introduced as soon as possible, the trend of debt expansion and financial risk spread will be difficult to be effectively curbed.

Objective analysis, China's existing debt management framework is not sufficient.

Since the audit conducted a comprehensive audit of government debt in 2013, the government's senior management in the face of debt control, the continuous introduction of dozens of related documents. The new budgets that were implemented in 2015 also rarely set out many of the terms of debt management. Today, despite the basic framework is ready, senior management debt determination and efforts remain unabated, the relevant policy documents continue to be frequently introduced is proof.