Chinese local gov't fiscal revenue maintains steady growth

CAPABLE OF DEFUSING RISKS

In response to the concerns over the mounting government debt risks, an MOF official pointed out that China's government debt ratio is not high in general.

The ratio of China's statutory debt to the country's GDP has been stable at around 50 percent, below the 60 percent international warning line and the level of major market economies and emerging markets.

China has been keeping its debt level controllable. By the end of 2022, the outstanding local government debt came in at about 35.07 trillion yuan, including 14.4 trillion yuan in general debt and 20.67 trillion yuan in special debt, all within the debt limit approved by the national legislature.

In recent years, tackling debt risks has been high on the policy agenda of the Chinese government. Finance authorities have tightened regulations on debt to hold firmly onto the bottom line of no systemic risk while promoting the establishment of a long-term mechanism to prevent and resolve hidden debt risks.

"Generally speaking, the fiscal condition in China is safe and healthy, leaving ample leeway for dealing with risks and challenges," the MOF official said.

The pressures and challenges of local finance can be successfully resolved through their own efforts and national policy support, Wang said, adding that a stable and sustainable financial situation will help the steady and long-term growth of the Chinese economy.