The Study On The Issuing Of The Local Government Bond

In the transitional period, There has been drastic local government budget deficits in China. To some degree, we can say that the tax sharing system bring us the financial difficulties of local governments.In fact, in the present stage, it is a very common practice for foreign local governments to issue bonds to finance city infrastructure construction. As an indispensable component of the bond market, the local bond market plays an important role in development and steady operation of the bond market and even of the entire financial institution in many developed countries especially in America and Japan.The issuing of the local government bond is internally based on the need of exercising functions and powers of local government, systematically on the debt debt-sharing system. In fact, China has already owned the necessity and basic condition of issuing the local government bond initially. With the economic restructuring further deepening, opening local bond markets has become the trend of the times and had abundant necessity and feasibilitySo based on the experiences of American and Japanese bond markets and the analysis the fiscal dilemma of local governments, the article has proposed the fundamental framework of the local government bond.We can choose some cities to make experiments of issuing municipal bond. The issuing pattern is to be diversified, The issuing maturity, taken into the consideration of capital need of local government.