The Research Of Local Governmentdebt Risk In China

In the impact of pro‐active fiscal policy and moderately loose monetary policy, the scale of local government debt expanded rapidly and the venture of debt was very serious. Local governments are faced with debt‐servicing liability crisis. Meanwhile, the debt venture leads to government financial crisis, which has influenced the development of social, economy and culture.The paper contains:Chapter one is to summary relevant document of local government debt venture. The part includes the definition of local government debt, summarization of public choice theory in venture evaluation of present local debt, presentation of fiscal decentralization theory basing on practical causes of local debt.Chapter two is empirical study on local government debt venture. This part estimates the situation of local debt in X distract, summaries the debt venture, analyzes the causes of debt venture in X distract.Chapter three includes: introducing the administrative situation of local debt venture in America, Japan, and India. By presentation of debt means, introduction of debt management, expression of debt method is acquired for the local debt administration in our country. Chapter four is set forth to dissolve the venture in local government debt. The part gives some advice on preventing the local government debt venture of system requirements, establishing the local government debt risk forewarning system, and the planning of controlling the local government debt.