China Allocates 550 Billion Yuan in Unused Government Debt Quota to Local Governments
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China's Ministry of Finance announced on the 9th that it has allocated 550 billion yuan, or 82 billion dollars, in unused government debt quota to support local government finances and expand infrastructure investment in pursuit of its growth target. Of that total, 300 billion yuan will go toward supporting the day-to-day operations of county-level governments, while the remainder will be directed to infrastructure projects, particularly those already under construction and those in economically strong regions. Policymakers have also tapped unused government debt quota as a year-end fiscal stimulus measure over the past two years, but this year's amount exceeds the totals for 2024 and 2025. In a separate statement, the ministry said it would implement a more proactive fiscal policy "vigorously and effectively" to support the expansion of domestic demand.