According to a report from the Wall Street Journal, ''China's local-government liabilities jumped to nearly $3 trillion at the end of June, according to a new audit.
The audit released on Monday showed China's local government liabilities totaled 17.9 trillion yuan ($2.95 trillion) at midyear. China's last full audit of local-government borrowings estimated liabilities at 10.7 trillion yuan at the end of 2010.
The audit released on Monday showed China's local government liabilities totaled 17.9 trillion yuan ($2.95 trillion) at midyear. China's last full audit of local-government borrowings estimated liabilities at 10.7 trillion yuan at the end of 2010.
The new tally includes direct debt as well as guarantees and other potential liabilities, according to a report released by the National Audit Office''.
Debt from central and local governments but excluding guarantees and other liabilities stood at 20.7 trillion yuan by the end of June, according to the report.
The office said in the report that risks from local-government debt are still controllable. That echoes recent comments by top Chinese leaders, including Premier Li Keqiang, who has said local debt remains within safe levels.
Local debt is one issue under scrutiny by Chinese leaders examining reform proposals to keep China's economy humming for years to come. Also on Monday, the Chinese Communist Party leadership said President Xi Jinping will head a group overseeing the implementation of reforms.
The National Audit Office, in an effort to get a more accurate picture of borrowings at the local level, said in July it had started a comprehensive investigation into local-government debt.
In a September interview, a Chinese government researcher said the current dependence on heavy borrowings to drive rapid economic growth is unsustainable.
