Directly arranging 10 trillion yuan, the pressure of local government debt will be greatly reduced

On November 8th, Minister of Finance Lan Foan introduced at the press conference of the 12th meeting of the Standing Committee of the 14th National People's Congress held on November 8th that starting from 2024, our country will arrange 800 billion yuan from the new local government special project bonds every year for five consecutive years, which is specially used for chemical bonds, and the accumulated replaceable hidden debt is 4 trillion yuan. Coupled with the 6 trillion yuan debt limit approved by the Standing Committee of the National People's Congress, the local debt resources will be directly increased by 10 trillion yuan. At the same time, it is also clear that 2 trillion yuan of hidden debt for shantytown renovation due in 2029 and later will still be repaid according to the original contract. Lanfoan said that after the policy coordination, before 2028, the total amount of hidden debt that local governments need to digest has dropped sharply from 14.30 trillion yuan to 2.30 trillion yuan, and the pressure of debt reduction has been greatly reduced.