Caixin
Mar 05, 2018 04:19 PM
ECONOMY

China Lays Down Higher Debt Barrier for Rail Lines

The new funding guidelines by the National Development and Reform Commission will likely triple the fiscal and gross domestic product requirements for subway projects, such as Beijing Yanfang line. Photo: VCG
The new funding guidelines by the National Development and Reform Commission will likely triple the fiscal and gross domestic product requirements for subway projects, such as Beijing Yanfang line. Photo: VCG

China’s top economic planning body will raise the revenue requirements local governments must meet before building rail systems, in a bid to slow the growth of regional debt, sources close to the matter told Caixin.

The National Development and Reform Commission (NDRC) will consider the fiscal revenue, gross domestic product (GDP) growth and debt ratio of local authorities — all governments besides the central government — when it weighs whether to approve the construction of rail networks including subway and light rail systems.

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