Chinese legislators are considering allowing local governments to issue bonds, a move that will help finance the nation's $586 billion stimulus package.
The 18th meeting of the chairman and the vice-chairpersons of the National People's Congress Standing Committee on Tuesday heard the State Council's report on allowing local governments to issue bonds, but no further details were released.
The central government announced a $586 billion stimulus package last November, of which local governments' budgets are expected to account for a substantial proportion. However, a slump in the real estate sector and the ensuing decrease in land sales, meant local governments had little fiscal surplus to pay for their part of the stimulus package.
Caijing, a leading Chinese business magazine, reported earlier that the central government would allow local governments to issue bonds worth up to 200 billion yuan this year.