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Premier stresses better investment of special bonds

Updated: Jul 17,2020 07:12 AM

Premier Li Keqiang stressed better investment of special local government bonds and no permission of image projects at the executive meeting of the State Council on July 15.

Those at the meeting also stressed a clear and closer connection between the funds and projects and efficient utilization of the funds.

By mid-July, among 3.75 trillion yuan of the newly-added special bonds, 2.24 trillion yuan have been issued and 1.9 trillion yuan have been disbursed for major construction projects.

So far 85 percent of the special bonds have been utilized to help respond to the impact of the epidemic, expand effective investment, and stabilize economic fundamentals, Premier Li said.

The issuance and use of special local government bonds should be sped up, and their use in supporting major construction projects, especially new infrastructure, new urbanization initiatives, and major projects, and public health facilities, also should be supported, the Premier said.

He said the bonds should be used in disaster prevention and reduction as needed, and for the projects that can’t start in a short time but need to adjust the use of funds, the adjustment should be completed before September and reported according to the procedures.

Premier Li said if the new special bonds have been issued, their use must be clarified, and the construction quality of the projects must be guaranteed to better unleash the investment’s strong drive for economic and social development.

He noted that the allocation of the special bonds should be optimized, and should not be used to replace outstanding debts and vanity projects.

China is still a developing country and local governments should try their best within their ability to avoid huge fiscal burdens, Premier Li said, adding that all the special bonds should be used to ensure stability in six fronts and security in six areas.

"Facing complicated domestic and international situations, we should work on our own undertakings, and solve urgent issues," Premier Li said.

With good macro policies and adjustment, stable economic fundamentals will ensure vast space for future development, he added.