Since 2015 when the new budget law came into force, issuance of local government bonds has become the only way for the government’s debt financing. Under the correct leadership of the municipal party committee and municipal government, the Municipal Finance Department actively reported to China’s Ministry of Finance on the financial pressure faced by the city in the construction of major public welfare projects, and obtained an understanding and strong support from the Ministry.
According to the unified deployment of the Ministry of Finance and the principle of “Issue early, fund-use early, and see early effectiveness”, the city has launched this year’s government bond issuance in January. Up to now, it has successfully issued 10.2 billion yuan of local government bonds, including 5.7 billion yuan of general bonds, and 4.5 billion yuan of special bonds. The raised money will provide a strong financial support for the construction of public welfare projects such as traffic system, Yellow-river West-east Diversion Project, and shantytown renovation.
In the next step, the city will promptly and scientifically allocate the newly-increased debt limits in accordance with the requirements of the Ministry of Finance. It will further accelerate the bond issuance. And it will use the raised funds to increase financial support for key projects of national, provincial and municipal governments, so to make better play of government bonds to stabilize investments, expand domestic demand and strengthen the economy weak points.