New | China’s local government debt up 6pc in 18 months, report says

The figures were contained in a report sent to the national legislature, which is considering a bill from the State Council that would limit how far local governments can move into the red. It would be the first such cap since the Budget Law was passed last year.

There is no comprehensive breakdown of local authorities' debt loads in China, but the report sent to the National People's Congress and obtained by Caixin put the figure for the end of last year at 11.6 trillion yuan, up from the National Audit Office's 10.9 trillion estimate in June, 2013.

About 6.6 trillion yuan of the 2014 year-end total was incurred through funding projects in transport, public facilities and energy projects. That was an increase of 27 per cent.

The ceiling the State Council sent to the NPC Standing Committee covers debts accumulated by the end of last year plus a 500 billion yuan deficit approved by the legislature in March.

Once the cap is approved, the State Council is empowered to divide the amount among local governments.