The ratio of outstanding explicit debt to fiscal revenue - a gauge of repayment capability - reached 183.5 per cent in Tianjin (pictured) last year. Photo: Shutterstock
The ratio of outstanding explicit debt to fiscal revenue - a gauge of repayment capability - reached 183.5 per cent in Tianjin (pictured) last year. Photo: Shutterstock

China debt: local government spending under microscope to protect national economy from ‘systemic risk’

  • Local Chinese cadres will be held accountable for the rest of their lives if the debt raised during their terms is found to be problematic in the future
  • Key policies or investment projects that would be funded with public money will have to undergo a ‘fiscal endurance’ evaluation