The standing committee of China’s party-controlled legislature has approved a local government debt ceiling of RMB16 trillion (US$2.5 trillion) for this year, South China Morning Post reported, citing state media. The total for 2015 is made up of the RMB15.4 trillion in local government debt outstanding as of the end of last year and RMB600 billion set as the limit localities can take on in additional borrowing this year, according to state news agency Xinhua. It claimed a new budget law and a government directive earlier stipulated that local debt’s size should be subject to approval by the NPC after submission by the State Council, China’s cabinet.
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