Study On Regulation Of Local Government Debt Risk

The Budget Law of the People's Republic of China stipulates that local government is not authorized to issue local government bonds, but local governments at and blow provincial level have various finance actions which lead to the existing local debt in certain amount. Currently the local debt are very complicate and the amount is also huge in our county, so to some extent the finance risk of local government has emerged. The finance risk has become a real negative factor of the development of local economy and other undertakings. If it is not prevented and solved, it will seriously damage the stability of local finance and the consistent development of public finance. This paper gave a deep analysis of the cause of local government debt and impact of risk factors from the concept of local government debt. On the basis of linking of theory with practice, this paper takes empirical and normative analysis method to research local government debt. Illustrates the necessity of local government debt,then use empirical analysis to reach conclusion that the local debt risk in a relatively safe area, but local government still need to strengthen the regulatory risk of debt. Finally, it gave some advice on preventing and controlling local government debt risk by improving the system, strengthening the management of debt risk and creating investment and financing mechanism for local government. In order to reduce the risk of government debt to a minimum level and thus the risk of scientific and effective supervision has become more urgent and necessary. Around this theme to contains the following five parts:The first part is the background and significance of this topic, domestic and foreign research literature review, research contents and methods and lack of innovation.The second part illustrates local government debt risk theory. Introduced the concept of local government debt and local government debt risk; supervision of local government debt risk. The local government debt risk the general supervision of the process; local government debt risk assessment methods, focusing on illustrates the index method and the balance sheet liability methodThe third part illustrate the cause of local government debt.This article analyze that cause from the aspects of the financial system and local government competition, and then analyze the formation of factors affect the risk of local debtThe four part from the provision of public goods and economic development point of view on the need for government debt. Local government debt risk empirical analysis. In this section, combining the subjective and objective method to evaluate the debt risk profile of the local government.The five part gave some advice on preventing and controlling local government debt risk by improving the system, strengthening the management of debt risk and creating investment and financing mechanism for local government. In order to reduce the risk of government debt to a minimum...