China’s State Council has sent a bill to the country’s rubber-stamp legislature that would give the former the power to set allowable debt levels for lower levels of government, Caixin reported. The quotas that the council set for China’s provinces would include debt held at the end of 2014 and new amounts that the National People’s Congress approved earlier this year, Finance Minister Lou Jiwei said while explaining the proposed law to legislators this week. Once the legislature’s Standing Committee approves the quota bill, the cabinet will set detailed debt quotas for local governments that cannot be exceeded, Lou said.
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