The General Office of the State Council, in a circular on Oct 27, said that eight construction projects in four areas with high debt risks — Ningxia Hui autonomous region, Qinghai, Guizhou, and Yunnan provinces — were found in violation of regulations during an audit.

The Communist Party of China Central Committee and the State Council requested that local governments heavily in debt should rigorously cut expenses for basic construction, except those necessary for basic people’s livelihoods and institutions’ efficient operation, and raise funds to deal with debt risks.

To correct the problems, some of the projects were halted for public auction, some were shut down and sealed for hand-over, and others have returned the fiscal subsidies through original channels.

The circular also called for solid implementation of fiscal and financial discipline, improved project approval management and fiscal spending control, and more strict supervision and accountability.