China Considering Record Local Debt Quota, Wider Budget Deficit
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Chinese officials are considering a record quota for special local government bonds this year and widening the budget deficit target as they ramp up support for the world’s second-largest economy, according to people familiar with the matter.
The authorities are discussing a special local government bond quota of up to 3.8 trillion yuan ($560 billion), higher than the previous record of 3.75 trillion yuan, said the people, who asked not to be identified because the talks are private.