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BEIJING, Nov. 14 -- In latest effort to address rising concern over local government debts, China introduced Monday a four-grade emergency plan which could result in a "fiscal rebalance act" on the part of the local government.

The city and county-level governments will be ordered to launch a fiscal rebalance act if its annual payment for interest of general debts is 10 percent higher than its public spending budget, or that for interest of special debts is 10 percent more than its government fund spending budget, according to the emergency plan.