Liaoning sets good example for discovering local govt debt risks

ACCORDING TO LIAONING DAILY, the province's people's congress is setting up an investigation committee to examine the government expenditure budget structure and government debt. Beijing News comments:

The investigation committee, which will strengthen supervision on government spending, is the first of its kind to be established by a provincial people's congress.

The debt issue has proved a challenge for many local governments. From a practical point of view, the primary problem is to face the issue of local government debt directly. Thus it is good that the People's Congress of Liaoning has taken the lead in putting the local government's spending in its cross hairs.