Jiangsu to strengthen government debt management can not borrow money to the enterprise

in our lives, some local governments in the future fiscal deficit, often take a measure to make up for the shortfall, is related to local enterprises above the force, in view of this phenomenon, in the future, the government can not borrow money to the enterprise debt". In December 5th, the Jiangsu provincial government announced the "opinions on strengthening the management of government debt" (hereinafter referred to as the "opinions"), which clearly divides the government and enterprise boundaries, not through the enterprise borrowing government debt, corporate debt the government nor by explicit or implicit guarantee way of borrowing.

Jiangsu will strictly control the government or debt growth. Opinions provisions, to lock the government or the debt stock, in principle, only not increase. The new government or debt, should be strictly limited within the scope of the law guarantees, and in accordance with the contract to bear the relevant responsibilities in accordance with the law. The people’s governments at all levels and their subordinate departments shall not provide any form of guarantee illegal for any unit and individual debts.

addition, Jiangsu will limit the use of new government debt funds. Through the issuance of local government bonds borrowing government debt funds can only be used for public welfare capital expenditures and modest return of the stock of debt, to guarantee the construction in public welfare projects, priority for major infrastructure and major livelihood projects, shall not be used for recurrent expenditure and building hall and other prohibited expenditure. General bond funds are applied to the development of public welfare with no income, and special bond funds are applied to the development of public welfare with certain income.

government debt borrowing authority is further defined. The provisions of Jiangsu, within the limits set by the State Council, approved by the provincial people’s Congress, the provincial people’s government through the issuance of local government bonds borrowing government debt. Among them, through the issuance of common bonds borrowing general debt through the issuance of special bonds special debt borrowing. The Municipal People’s government at the county level where borrowing government debt, only approved by local government bonds amount for the provincial people’s Government on behalf of borrowing in the province.

according to the regulations, government debt must be through the government or the financial sector borrowing, other state organs and units refer to the administrative institutions of civil servant system shall not borrow any debt; other institutions borrowing debt, must be in compliance with the relevant provisions of the state under the premise, through the audit, the finance department at the same level of government approval. In the future, not through the enterprise borrowing government debt, corporate debt the government nor by explicit or implicit guarantee way of borrowing.

although the government is to serve the people, but in the financial problems, still need to strengthen their own management, while the government borrowing situation, the public also have the right to know. In the future, Jiangsu will establish an open system of government debt supervision. "Opinions", the people’s governments at all levels of the annual government debt balance changes, changes in content and construction of major projects to the people’s Congress or its Standing Committee recommended

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