Beijing Lets Local Governments Tap 550 Billion Yuan in Unused Debt Quotas

China’s Ministry of Finance announced Friday that it will allow local governments to tap 550 billion yuan ($82 billion) in unused debt quotas to plug budget gaps and fund infrastructure projects as policymakers intensify efforts to bolster the economy.

The fiscal mobilization effectively frees up borrowing space without requiring new legislative approval, serving as a fiscal tool for Beijing to inject liquidity into cash-strapped lower-tier governments quickly.