Test for Budget Law

Lack of funds should not be the reason for allowing local governments to issue debt bonds if they are not subject to effective supervision by lawmakers and the public.

This should be the rationale for the Budget Law revision, which has raised a controversy on local government debts across the country.

According to the second draft amendment to the law, being reviewed by the National People's Congress Standing Committee, local governments should not issue debt bonds, except when prescribed by the laws or the State Council.