Research For The Problem Of Local Fiscal Risk

In recent years, people begin to pay attention to that local fiscal risk has come quietly. Some local governments feel that the field that belongs to financial public expense lacks of input, so official normal operation is hard to be on duty for lacks of enough funds guarantee. Financial department feels that financial income cannot meet the expense, thus the budget is hard to be carried out. The officers feel that the wages cannot be provided on time and the default problem becomes outstanding gradually. Since the local fiscal risk factor of our country is accumulating continuously, it's much possible to initiate local fiscal risk even financial crisis if we don't guard against and solve positively in time. In view of this, discussing local fiscal risk is particularly important and realistic meaning.This paper is separated into 4 parts:The first part is the introduction. This part states the problems of the local fiscal risk of our country in brief, then reveals realistic meaning and the theoretical value of further research the fiscal risk problem and comments the important viewpoint of international and domestic theoretical circle about fiscal risk and local fiscal risk, thus puts forward the research train of thought, method and focal point.The second part analyzes the reality and the theoretical foundation of local fiscal risk which is the theoretical foundation of the paper. The paper identifies the definition of the local fiscal risk clearly, and thinks it's the possibility of harm local regime normal operation and its function exercising for the local financial capital suffers loss or government spending emerges difficulty when influenced by the various undetermined factors. The local fiscal risk has 5 characteristics obviously: comprehensive, turn rail, scatter, regional level, concealing harm. By researching theoretically further for the inner forming, transforming and conducting mechanism of local fiscal risk, the paper analyzes the form reason of local fiscal risk according to the actual condition of our country from the aspects, such as economy, system and debt.The third part is the advanced warning mechanism and appraisement control index system of local fiscal risk which is regarded as having directly realistic meaning. This part establishes the goal and basic principle of the local fiscal risk mechanism of advance warning at first, then according to the goal and requirement of the riskmechanism of advance warning, then clarifies the basic content of risk mechanism of3advanced warning of which the core is debt, the base is specific project and the monitoring subjects are mobility and paying off ability The process of enforcing risk advance warning mechanism is concluded for three processes, those are risk identification, risk forecast and risk appraisement. The paper reflects the financial mobility and paying off ability, measuring the condition and tendency of local fiscal risk through using the index system of appraisement control local fiscal risk, such as economic environment, financial income, government spending and comprehensive appraisement.The forth part is the measures for guarding against and solving the local fiscal risk. Based on preceding theoretical, realistic analysis and the reference for domestic and international experience, the paper makes 5 specific suggestions at last: the first is to develop local economy and the optimization local structure of financial resources, the second is to perfect further the financial system of distribution and control effectively fiscal risk. The third is to adjust and optimize local structure of government spending, strengthen public expense management. The forth is to strengthen debt unified management, put the local system of government bonds to the market at the proper time. The fifth is to strengthen fiscal risk consciousness of different level government, establish fiscal risk advance warning mechanism.The exposition of this paper can be reached the following conclusion: Since the uncertainty of reform development and limitation...