Research On Issuing The Local Governmental Bond In China

Since 1998 our government performed the proactive financial policy, the issuing scale of national debt increased rapidly. The policy of national debt is becoming an important means to adjust economy macroscopically. Whereas, as a part of the system of public debt, the matter of the local governmental bond hasn't been emphasized. The analysis of the theory of the local governmental bond has been in the paper. Because our country law prohibit that the local government issue bond. In order to accelerate the development of economy, many local governments had a large covert debt, financial condition worsen rapidly. It is the time to permit that some local government issue bond. On the basis of the analysis of the theory of the local government bond in my paper, I discussed some matters as follows: the necessity and feasibility of issuing the local governmental bond, the elementary assumption of erecting the system of local governmental bond, some problems of issuing the local governmental bond need to deal with.