The Issuance Of Local Public Debt And The Research Of System Design In China

The study on the issuing of the local government bondin ChinaSince 1998 our government performed the proactive financial policy, the issuing scale of national debt increased rapidly. The policy of national debt is becoming an important means to adjust economy macroscopically. Whereas, as a part of the system of public debt the matter of the local governmental bond hasn't been emphasized. The analysis of the theory of the local governmental bond has been in the paper. Because our country law prohibit that the local government issue bond.In fact,in order to accelerate the development of economy, many local governments had a large covert debt, financial condition worsen rapidly. It is the time to permit that some local government issue bond. 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 feasibility On the basis of the analysis of the theory of the local government bond in my paper, I discussed some matters as follows: the necessity and feasibility of issuing the local governmental bond, the elementary assumption of erecting the system of local governmental bond, some problems of issuing the local governmental bond need to deal with.So 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 bond. taken can choose some cities to make experiments of issuing the issuing pattern is to be diversified, The issuing municipal into the consideration of capital need of local government.