On The Power Of Local Governments Issue Bonds

Local financial autonomy is the basis of local self-government contents, and local governments to issue debts are an important content of local financial autonomy. The fundamental premise is that local governments issue bonds local governments have independent financial authority, to repay the debt of local financial revenue. Developing countries as a single system, whether local governments in China have made corresponding claims related to tax sharing reform deepens and the market economy and prosperity, involves constitutional issues central to the separation of powers. Giving local governments send some claims in China, is not only necessary requirement for the development of market economy, is also a good opportunity for constitutional reform.This article is divided into three sections, preface, body and conclusion. The Preface section propose to the problem of local government debts through study on a sample the Chinese Ministry of Finance issued 200 billion bonds on behalf of local governments. The Body section is divided into four chapters, the first chapter from the object to define the scope of the concept of debt issued by local governments. Learn from foreign experience in local government have made claims, both positive and negative aspects from the analysis of the feasibility and necessity of local government bond issues. The second chapter in the legal property of the focus of local governments to issue debt is a local administrative organs of the public authority, must be the central government, local People's, Congress and the public's strong discipline and supervision. The third chapter from the constitutional and legal level, the bond behavior of Chinese local governments to do the analysis, neither the Constitution clearly states that without specific legal basis, and then from the perspective of history to do further study and comment. Chapter IV is the major content of this paper, the local government to issue bonds under conditions of market economy have some risk of moral hazard, there may be against the interests of local residents. Therefore, the need to public law principles, the main issue bonds, bond content and regulatory procedures to limit and regulate. The Conclusion section summarizes stressed the need for local governments in China have made certain claims in order to promote China's economic development and constitutional reform.