Core Insights - The article highlights the significant issues related to the management and utilization of local government special bonds, which are crucial for stabilizing investment and the economy [1][3][14] - Recent audits from 17 provinces reveal both new and old problems in the use of special bond funds, including data inaccuracies and project management failures [1][3][4] Special Bond Issues - The scale of special bond issuance has been increasing, with an estimated issuance of 4.4 trillion yuan in 2023, leading to a total local government special debt balance of approximately 34.8 trillion yuan [3] - Audits indicate that some local governments exaggerate project benefits to secure funding, leading to issues such as project delays and fund misappropriation [4][6][10] Project Management Challenges - Many special bond projects face slow progress or even suspension due to inadequate preliminary work and financing issues, resulting in idle funds [4][6][10] - Specific examples include projects in Sichuan and Hebei, where significant investments have been made without corresponding progress, leading to potential financial losses [4][6] Misuse of Funds - Instances of fund misappropriation are prevalent, with reports indicating that special bond funds are often redirected to cover other expenses, such as debt repayment and basic public services [6][13] - A total of 651.8 billion yuan has been reported as misappropriated across 92 regions, primarily for maintaining basic services [6][13] Regulatory and Monitoring Issues - The existing monitoring systems for special bonds are found to be inadequate, with issues related to data integrity and completeness hindering effective risk management [8][17] - Recommendations include improving the monitoring system and establishing data-sharing mechanisms among various departments to enhance oversight [17] Recommendations for Improvement - Recent policy changes aim to optimize the management of special bonds, including a negative list approach to broaden the scope of eligible projects [14][15] - Experts suggest enhancing project feasibility assessments and involving financial institutions in the evaluation process to ensure realistic revenue projections [15][19] - Strengthening accountability and reforming the fiscal system are also recommended to address the underlying issues of special bond management [18][19]