"The Standing Committee of Guangzhou Municipal People's Congress attaches great importance to government debts in 2012, and has included the problem in the supervision work plan for the first time," said Ouyang Zhi, Director of the Financial Work Committee of the Standing Committee of the Guangzhou Municipal People's Congress, on the afternoon of February 6 at the press conference for the "Supervision Work Plan of the Standing Committee of the Guangzhou Municipal People's Congress and the Committee's Decision on the Major Work Plan for 2012".
In July 2011, the National Audit Office announced the country's total local government debts of RMB 10.7 trillion. In December, the Guangdong Audit Department announced the province's total local government debts of RMB 750 billion. Eight investment and financing groups were established in Guangzhou in 2008, and enterprises, including Guangzhou Urban Construction Investment Group Co., Ltd. and Guangzhou Water Investment Group Co., Ltd., became major urban construction financing platforms in the citywide construction leading up to the Asian Games. The two companies alone borrowed a total of nearly RMB 100 billion.
Facing heavy local debts, some deputies to the municipal people's congress and members of the CPC municipal committee called for incorporating investment and financing platforms into budget for supervision during the two municipal conferences. "Local government debts", a problem that has drawn wide attention, will fall within the scope of deliberation by the municipal people's congress in 2012.
On February 6, Ouyang Zhi said the municipal people's congress attaches great importance to government debts in 2012 and has included the problem in the supervision work plan for the first time, to enhance supervision effects. The congress has organized a panel consisting of some members of the standing committee and the financial committee and some deputies to the congress to conduct an in-depth investigation into government debts, analyze and evaluate operations of several financing platforms, borrowings, project funds, total debts and repayment plans, and made supervision proposals on this basis, thereby providing necessary data and basis for deliberation by the standing committee. The standing committee will deliberate on the problem of government debts, offer deliberation opinions and supervise opinion implementation when necessary.