Recently, in order to implement the decisions and deployments of the Party Central Committee and the State Council, and in combination with the current financial and economic operation, the central government has allocated 500 billion yuan from the local government debt balance limit to local governments, "said Li Dawei, a first level inspector of the Budget Department of the Ministry of Finance and director of the Government Debt Research and Evaluation Center, at the press conference on the fiscal revenue and expenditure situation for the first three quarters of 2025 held by the Ministry of Finance on October 17. It is understood that the limit of local government debt balance refers to the difference between the statutory debt limit of local governments and the balance, mainly formed by strengthening fiscal revenue and expenditure management and arranging budget funds to repay due statutory debts. In recent years, within the statutory debt limit approved by the National People's Congress and with the consent of the State Council, the Ministry of Finance has timely arranged a certain scale of local government debt balance limit to support local governments in resolving outstanding government investment project debts, digesting government arrears of corporate accounts, and so on. Compared with 2024, this arrangement of balance limits has two characteristics: firstly, the intensity has increased. The total scale increased by 100 billion yuan compared to the previous year. Secondly, the scope has been expanded. This year's 500 billion yuan will not only be used to supplement the comprehensive financial resources of local governments, support them in resolving outstanding government investment project debts, and digest government arrears to enterprises, but also allocated for the construction of eligible projects in economically developed provinces, providing precise support for expanding effective investment and better playing the role of economically developed provinces as the backbone. Feng Lin, Executive Director of the Research and Development Department of Oriental Jincheng, told reporters that the external environment in the fourth quarter has become more challenging, and the macroeconomic "stabilizer" role of infrastructure investment will be more valued. The strengthening of fiscal policy provides key support for stabilizing the macroeconomic operation in the fourth quarter. Li Dawei stated that various regions are currently working hard to implement relevant procedures, striving for early release, early use, and early results. The use of relevant balance limits will help consolidate the positive trend of economic recovery and provide strong support for local governments to achieve this year's economic and social development goals. This year, in order to further enhance the effectiveness of the proactive fiscal policy, ensure the funding needs of major projects in key areas, consolidate and expand the positive momentum of economic recovery, the Ministry of Finance will continue to issue the limit of new local government debt for 2026 ahead of schedule. ”Li Dawei stated that firstly, in terms of work progress, we should expedite the implementation of relevant procedures, issue quotas as early as possible, facilitate the connection between local governments and the 2026 budget preparation, and support the construction funding needs of key projects in the first quarter of 2026. Secondly, in terms of project arrangement, the quota issued in advance focuses on supporting major strategic and key projects determined by the Party Central Committee and the State Council. The Ministry of Finance will continue to guide and supervise various regions to accelerate the preparation of project reserves, accelerate the preliminary work of projects, and guide the pilot areas of special bond projects to optimize the project review mechanism through "self review and spontaneous"; The United Nations Development and Reform Commission and other departments are strengthening project audits in non pilot areas to further improve project quality. Thirdly, in terms of usage direction, the quota issued in advance is not only used for the construction of eligible projects, but also continues to support localities in resolving hidden debts and resolving government arrears of corporate accounts in accordance with regulations, promoting the smooth operation of local finance. (New Society)