BEIJING, Nov 4 Reuters Chinese lawmakers reviewed a cabinet bill that would raise ceilings on local government debt to replace existing hidden debt as the standing committee of China39;s top legislature started their meeting on Monday, state media Xinhua reported.
The bill is a closelywatched topic on the agenda of the Monday to Friday meeting of the Standing Committee of the National People39;s Congress NPC, as the heavy burden of local government debt has weighed on investment and economic growth.
Lawmakers reviewed the proposal by the State Council, or the cabinet, on raising local government debt limits to replace their existing hidden debt, Xinhua said.
On behalf of the State Council, Minister of Finance Lan Foan explained the bill and Xu Hongcai, Vice Chairman of the NPC Financial and Economic Affairs Committee, made a report on the committee39;s review result of the proposal.
The Chinese economy has lost steam since the second quarter as a prolonged property market downturn and ballooning local government debt dented growth momentum.
Last month, Lan said China would significantly increase government debt and support consumers and the property sector, but gave no details of the scale or timing of the fiscal measures.
Lan said China plans a largescale debt swap program, alongside continued use of bond quotas for debt resolution, describing the measures as the strongest debt reduction measures in recent years. Detailed policies will be announced after legal…