Research On The Legal Characteristics And Nature Of Local Government Debt

The national audit office where the government debt audit results show that, by the endof2010the local government debt balance is10.717491trillion yuan. With such a largenumber of local government debt, we have to worry. The appropriate way to repay the debt,and the local government debt risk problem has become a deadly crux. The general currentlegislation is lack of unified regulation, but referring to the local government rules. Aroundthe government regulations of the relevant provisions on the local government debt is varied,the concept and the nature of local government debt, and the particularity of the localgovernment debt are not clear, which is not conducive to debt management and riskprevention and resolve. Therefore, to clarify what is the debt of local government, thesimilarities and differences and legal particularity between local government debt and the debtof civil law, the legal nature of the local government debt, will undoubtedly have importanttheoretical and practical significance.In addition to the introduction, the paper is divided into three parts, and twenty-fivethousand words.In the first part, constructed by reference the concept of bonds on the civil law and localgovernment debt on the economics, the author build the legal concept of local governmentdebt, and divided the local government debt into public debt and ordinary debt, the direct debtand indirect debt from a legal perspective, then describes the current situation of China’s localgovernment debt.Through comparing research of the debt and civil law, the second part draws a outline oflocal government debt legal characteristics by four aspects which are the purpose of debt, therelationship between the main of the debt, enforcement power of the debt and the creditorprotection mode.The third part points out that local government debt is beneficial to both the public andthe individual, and could be equal and unequal at the same time. Further more, the localgovernment debt has the property of public law and private law both, and thus not only shouldit be restraint by private laws, but also should be subject to democratic principles of publiclaw.