Legal Regulation Of Local Government Debt Risk

Today,under the tax-sharing financial management system,local government debt has become an effective method to solve the problem of local government financial resources,has played an important role in the development of local and even national economic and social development.However,the scale of local government debt in China has increased year by year after 2008,the debt risk has continued to rise,which has caused systematic harm to China's fiscal and taxation finance sector to a certain extent.Controlling the scale of local government debt,stabilizing its development trend,reducing its debt risk,and actively seeking the sustainable development of local government debt have practical significance for the sustainable development of China's economy.The fundamental means of controlling the local government debt risk is to seek legislative binding of functional power and to establish a government debt supervision system with legislation as the center.With the introduction of the new "Budget Law",China has taken this as the center and the basis,and introduced a series of laws and regulations for local government debt supervision.The new "Budget Law"has always played a fundamental,principled and guiding role in the initial establishment of China's local government debt management system.Under the new "Budget Law",the provincial government can obtain a certain scale and limited use of credits through the State Council's approval to the National People's Congress and its Standing Committee.Summarizing and extracting the main types of local government debts in China at this stage and the reasons for their occurrence,it can be concluded that the revised "Budget Law" aims to grasp the scale of the province's debt and thus grasp the national debt risk by regulating the provincial government's debt-raising behavior.But can not solve all the problems of local government debt risk.Risk prevention in all aspects.For example,the new"Budget Law"stipulates that the provincial government's creditor's rights lack the supporting system guarantee,the new "Budget Law"does not include local government debt into the budget preparation scope,and the local government debt scale risk prevention and control system has not yet passed legislation.Although China's local debt scale has not broken through the international warning line standards,there are still problems such as huge implicit debt,excessive government debt growth,and weak supervision.To a certain extent,it has hindered the operation of China's macro economy.In this regard,a complete and complete local government debt legal system should be established,the budget supervision mechanism of the new"Budget Law" should be supplemented,and a special local debt law should be formulated to integrate low-level regulations.Adhere to the principle of the new"Budget Law",in the short term,the local government debt risk will be controlled within the scope of safety.The medium and long-term development goal is to establish and improve China's local financing system.