China Orders Urgent Audit Of Local Debt, Calls For 3% Deficit Cap

The government of China has ordered an urgent audit of local debt, down to the village level, ahead of plans to get cap the nation’s annual deficit at 3 percent of GDP. A similar, but less comprehensive audit was done for the first time in 2011 and the announcement that the national government would be taking an even closer look at local affairs brought the Shanghai Composite Index down by 1 percent. State council of China request debt audit The government debt audit was requested over the weekend by the State Council, China’s equivalent of the Cabinet, and will be…