Chinese authorities have approved the issuance of special treasury bonds worth 3 trillion yuan ($411 billion) for the coming year, according to sources cited by Reuters on Tuesday, as Beijing ramps up fiscal stimulus to revive its struggling economy.
China has allowed local governments to invest in a broader range of areas using bonds, while simplifying approval procedures in a move aimed at boosting the local economy.
These investments will include infrastructure and technology projects, as well as public facilities such as elderly and childcare services, with unprofitable projects excluded.
Eleven key regions now have the authority to directly approve projects funded by bonds, increasing the flexibility and autonomy of local authorities.
Special bonds have become a vital tool for financing infrastructure projects. However, Beijing's stringent criteria have made it challenging to identify suitable projects.
The new guidelines aim to accelerate the utilization of bonds while tightening oversight to prevent misuse.
China also plans to enhance financial support for public consumption next year by increasing pensions, supporting medical insurance for residents, and expanding consumer goods swaps, according to an announcement by the Ministry of Finance on Tuesday.
