About The Situation, Problem And Countermeasure Of Local Government Bond Issuing In Our Country

Local government bonds is one of the important part in the bonds system. Entitling the local government to issue bonds is necessary requirement of tax-sharing system. Local government finances and constructs the public welfare in the way of issuing bonds is conform to the public products theories, fiscal decentralization theories and the public fiscal theories. In developed western countries, government bonds has a history of several decades. Government issuing bonds is a common means for government financing under the classified fiscal system. Our country unlocked the local government bonds issuing in the moment of central and local government under the heavy burden,fiscal capacity of local government is not enough. But the issuing of the local government bonds is in its infancy at the present, its supporting system and regulation is not perfect. In this case, a further discussion and research need to be conducted on the situation of local government bonds issuing, the effect of issuing and how to improve itself.At first, this article conducts a research on the current situation of local government bonds issuing on the basis of local bonds theory and the actual situation in our country. Through the analysis on the economic background of our country's local government bonds issuing, it elaborates the imbalance exists in the finance power and office power of our country's local government, local government can not make the ends meet and in heavily indebtedness, local financing platform expands increasingly. In this case, issuing local government bonds is for our country's actual need. It also elaborates the issuing scale and the operation system of our country's local government bonds objectively. This article analyzed the effect of local government bonds issuing and bring forward that the issuing of local government bonds relieves the pressure on the central and local government finance, perfect our country's finance system, award the finance power to the local government, standardize the local government financing behavior, boost the construction of local public welfare undertakings and enrich the investment of the capital market in our country. And then, the article analyzes the issuing market, issuing system and the repaying capacity of our country's local government bonds to elaborate the problem exists in the issuing of our country's local bonds. It concluded that local government bonds which issued by central government has its own trouble such as secondary market is imperfect, the conclusion of the interests and the issuing are not conform to the market rule and tax system is imperfect. Meanwhile, this article also analyzed the contigent risk in the course of our country's local government bonds issuing which include dept paying risk, operational risk, inflationary risk, mores risk and the risk of widening the regional difference.Secondly, this article puts forward the countermeasure of perfecting our country's local government bonds issuing. And draw lessons from the Japan and American to improve the method of issuing, operation and supervision of our country's local government bonds, so that our country's local government bonds can develop in an effective way for a long time. This article also bring forward that it necessary to clear up all the outstanding indebtedness in advance and establish a strict regulation and control system to avoid local indebtedness out of control. Our country should establish a perfect tax-sharing fiscal system, strict budget approval system and the issuing system which conform to the market rules to provide the system guarantee to the development of our country's local government bonds. Through the analysis, enforcing an effective supervision and risk control on the local bonds issuing is a necessary conditions for long time development of local bonds. Law supervision, administrative supervision and market supervision should be applied in the risk protection and operation supervision of our country's local bonds together.At last, we got the conclusion that our country could allow the local government to float a loan independently, with the constantly improvement of our country's tax system and approval system, supervision system, protection control system which be sued for local government bond issuing. That would construct a better local public infrastructure, boost the local public welfare and the local economy. But for the moment, our country should accumulate the experience and conduct a trial in the developed area at first to promote the development of our country's local government bonds issuing...