China to advance 2027 local government debt quota issuance
China's finance ministry said it will accelerate work on issuing part of the 2027 local government debt quota in advance. In the first three quarters, nearly 1.9 trillion yuan of special bonds were issued to replace hidden debt, reaching 95 per cent of the annual 2 trillion yuan target.
China's Ministry of Finance will speed up efforts to issue part of the 2027新增地方政府債務限額 (new local government debt quota) ahead of schedule, Deputy Director of the Debt Management Department Zhao Zeyong said on 23 October.
In the first three quarters of this year, nearly 1.9 trillion yuan (US$261 billion) of special bonds were issued nationwide to replace hidden liabilities, reaching 95 per cent of the 2 trillion yuan annual target, Zhao said. The issuance progress for the 6 trillion yuan hidden-debt replacement quota reached 98.3 per cent.
Zhao noted that in recent years, based on authorisation from the National People's Congress Standing Committee and with State Council approval, the ministry has in the fourth quarter of each year issued up to 60 per cent of the current year's new local government debt quota in advance for the following year.
The ministry also released fiscal data for the first three quarters. National general public budget revenue reached about 17.23 trillion yuan, up 5.1 per cent year on year. Within this, securities transaction stamp tax revenue surged more than 65 per cent to 239.1 billion yuan. General public budget expenditure totalled about 21 trillion yuan, rising 1 per cent year on year.
