Research On Local Government Debts In Our Country

At present,our country is in economy transformation period.The enormous fund demand for promoting the developing of economy and paying to the reform cost,makes the requisition for government's public financing strengthen further.But the law of our country stipulates clearly that the local government can't issue bonds.In the face of fund insufficient seriously,the local government has by way of"pluralistic financing"and carries on a large number of legal or illegal debt financing activities making changes according to specific conditions.Thus the huge local government liabilities formed.There are a lot of debts such as the outstanding salaries,deficiency in the social security fund,the outstanding payment by local financial institutes and the bad debt of local state-owned enterprises,will finally be assumed wholly or partially by local governments.Although these debts may not belong to the local government literally under the present system.Our investigation shows that up to now, no governmental departments can clearly tell how many debts our local governments actually have,but it's an indisputable fact that we have various forms of debts,huge amount of debts.It's obviously that those debts,without governmental statistics or supervision,will be the important factors to induce or intensify the national debts crisis and financial crisis.A comprehensive evaluation,liquidation and standardization of local government's debts and a reduction of debt risk will be very urgent and important.On the basis of linking theory with practice , starting with the concept of local government debts, this paper takes empirical and normative analysis method to research local government debts. Based on the definition of debt , in light of China's reality, we believe that local government debts is the local government bears certain obligations to other economic entities for forming debts relations in order to obtain certain economic interests, in accordance with the provisions of the law or contractual agreement as the debtor.On the basis of understanding the fundamental reason for a huge local government debts clearly, this paper believes that the fundamental policy to strengthen basic counter measure for managing the local government debts,resolve the debts risks in our country.According to internal logic order of the controlling and managing the government debts,this part points four basic countermeasure and suggestions.The first one is deepening the system reform and keeping thin limits of the local government contingent liability.The second one is perfecting the gulation system of relevant legal system to intensify institution obligation.The third one is seting up the precaution system in advance and reserve fund to strengthen resisting ability.The fourth one is seting up local public debt conrtol system to Make the behavior of local loans regular.To sum it up,it's a complicated system engineering to control the local government debts.We Should moderate various methods consistently.Thus,we can control the government debts in a reasonable level for setting up an efficiently government.