China's National People’s Congress Standing Committee has examined a proposal to address the hidden debt of local governments by transferring some off-balance-sheet liabilities to their official accounts. This proposal aims to alleviate the financial pressures faced by local authorities and was discussed during a meeting held on Monday morning.

The plan involves increasing the debt ceiling for local governments, allowing them to replace their concealed debts. This action reflects the ongoing efforts of Chinese officials to manage and mitigate the risks associated with local government financing, as concerns over hidden debt have become a growing issue in the country’s financial landscape.

The government's proactive approach to enhancing fiscal stability was reported by the official Xinhua News Agency.