Legal Research Of Issueing Local Bonds By Local Government

Although the "People's Republic of the budget law" provisions of Article 28 provides: "All levels of local budgets, live within our means and the principle of balance of payments, the deficit is not included. Apart from the legal and otherwise provided in the State Council, local governments may be issued local government bonds. "But the local government's financial crisis on the local governments to issue bonds to the rights of the community extensively discussed.In this paper, the theory of public goods, that theoretically should be given to local governments claim that the local government borrowing is to raise local public funds products effective channels at the same time the reform of the tax system in light of China's actual situation, discussed in the tax system under the system of empowering local governments cite claims is the objective needs of the reality, namely, the promotion of the local government borrowing power and financial authority of local unified objective needs.The second part of the current debt of the local government's main mode of analysis, our local governments need to issue local bonds; from institutional conditions, credit conditions and market conditions in three areas of local government demonstrated a viable issue local bonds sexual.The third part of the United States and Japan as an example of local government bonds in developed countries the legal system features a brief overview.Part IV discussed the future of China's local governments issue local bonds should be guided by the principle of the rule of law, principles of risk control, coordinated control of the central co-ordination principle and the "Who borrowing, who return" principle.Part V from the local bond issuers, issuing targets and methods, issue size,debt service funds, and local bond supervision and information disclosure, onthe future of the local bond system concept.Part VI light of China's actual situation shows that China's local governments toissue local bonds in the relevant legal system, the tax financial institutions,local officials and the performance evaluation standards for marketintermediaries on the necessary supporting reforms.