Local govts given warning on debt

Controls tightened on approval of construction projects and fundraising

The Ministry of Finance has issued a clear warning to local governments in China to get their financial affairs in order as the central authorities step up the battle to curb the growth of "implicit debt" in the year ahead.

"The illusion that the central government will provide a final guarantee should be smashed," said a report on the website of China's National Audit Office, quoting the ministry.