On August 29, the fifth meeting of the Standing Committee of the 14th National People's Congress reviewed the State Council's Report on Budget Implementation Since 2023 on August 28 and clarified that one of the five fiscal priorities is to forestall and defuse local government debt risks. First, we need to formulate and implement a package debt reduction plan. Secondly, the central finance actively supports the local government to do a good job in resolving hidden debt risks, urges the local government to coordinate all kinds of funds, assets, resources, and various supportive policies and measures, and closely focuses on cities and counties to increase work, properly resolve the stock of hidden debt, optimize the term structure, reduce the interest burden, and gradually slow down the debt risk. Finally, we also should strengthen cross-departmental joint supervision, always maintain a high-pressure situation, and strengthen regular supervision and evaluation to resolutely investigate and punish new hidden debt behaviors. We will uphold lifelong accountability and traceability to prevent new debt.

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