Rule tightens reins on govt borrowing

A regulation unveiled by the State Council on Sunday prohibits authorities from borrowing in ways that skirt laws and regulations to raise government investment funds, as China works to further standardize official investment actions.

The regulation, published after a State Council decree was signed by Premier Li Keqiang, stipulates that government investment actions must take account of economic and social development levels and the situation of financial revenue and expenditures.

The budgetary restrictions over government investment funds will be further tightened, and government-funded programs must not be constructed with capital advances from contractors, the regulation said.