Hunan Fiscal Sustainability DPO

Project Development Objective (Note: will be disclosed in the MOS)This operation will provide budget support to Hunan Province in support of fiscal and budgetary reforms for adjustment to the new Budget Law that promises to limit growth in subnational borrowing going forward and provide for the responsible management of subnational debt. Hunan Province has been relying greatly on subnational borrowing for achieving high rates of growth and development, and financing its position as a primary transportation hub within China. It has also been pursuing some reforms at a faster pace than most other Provinces in China to improve budgetary efficiency and better monitor/regulate borrowing at the district level of government. In partnership with the World Bank, it is hoped that Hunan Province can achieve even more, incuding an MTFF and 3-year folling budget consistent with fiscal sustainability that could make it a useful model for other Provinces in the country.Board Schedule CommentsThe request is for a board date in May, 2016