Research On Grass-root Governments' Debt Of China

In today's China, although deficits and debts of local governments are strictly prohibited by the laws, such as the Budget law of P R C, most local governments are still in debt in various degrees, of which the burden is out of people's imagination. Since the debts are non-standardization, enormous, complex to count and difficult to solve, the huge amount of debt itself has brought numerous influences and disadvantages to the development of the local economy, social stability, public service and the political power. So the debts of local governments have become a serious problem to the development of our country which needs to be solved as soon as possible. This article is concerning on the grass-root governments with the heaviest debt burdens.This research introduces the background of the local government debt problems, delimits related concepts, discusses the academic situation both in China and aboard and then comes to explain the influences and disadvantages of local 1 government debt in China.The first chapter analyses the current status of grass-root government debt. I explain the general situations of the debt, expound its five specialties, and finally introduce the researching framework and researching ways in this chapter.The second chapter mainly explains how the grass-root government debt comes into being from the aspects of macro-policy, economy environment, government management and political system. It points out the heavy debt depends on both objective system factor and subjective reasons.The third chapter introduces the research conditions of debt management abroad. I choose four representative countries, which are, American, Japanese, Mexican and Indonesian to deep study in order to learn from their advanced management approaches.The fourth chapter is the last and also the most important part of this article. It pays attention to how to solve the heavy debt burdens of grass-root government according to our national condition and the front studies. They are further perfecting the reform of revenue-sharing system, exploring flat government, enhancing budget management and establishing risk prediction system for local government debt.