Debt ceiling may be raised for local govts

Move to ease fiscal deficit pressure and strengthen investment, say experts

China is likely to raise the debt ceiling for local governments from next year to ease fiscal deficit pressure and strengthen investment, a key measure to stabilize economic growth against further headwinds, experts said on Thursday.

Like this year, local governments will focus more on issuing special bonds - a type of debt instrument outside the purview of fiscal deficit calculations, to raise funds for infrastructure construction projects, including transport, energy, and agriculture, they said.