Study On The Contingent Liability Risk In Our Local Government

The risk of the government contingent liability is one of the main financial risk. The current finance budget of China only reflects the part of government activities; it cannot cover all contingent expense. The contingent liability threatens the steady running of government and continuous development, also leads to the possibility of financial risk. From the view of local government, especially countryside governments, the problem is fairly obvious. Therefore, in order to reduce local government financial risk and keep the stability of local finance, to reduce the risk of national finance and maintenance the macro-economy, it is necessary to analyse the reason and possible negative influence, and solve this debt problem, while pointing out the corresponding system methods.This essay examines the country government's contingent liability in Si Chuan Province, and analyses the current situation of that debt, based on the local financial system and economic system. Also it shows the reason and negative influence. Then the essay brings forward some suggestions and methods including the establishing of government integrated debt alarm and analysis system to reduce the risk of contingent debt.