Research On The Appropriate Scale Of National Debt

Since the reissue of national debt in 1981, the scale of national debt presents stage-like increase. Especially after 1998, China has implemented the active fiscal policy, which mainly depends on the increase of issuing national debt to stimulate domestic investment. The scale of national debt expends sharply. The proper scale of national debt suddenly becomes the focus in the theory discussion. The paper chooses the national debt scale as the research object, reconsidering some big problems in the debt scale on the basis of the current achievements, hoping to enrich the research in this field.This paper is organized as follow: Considering the relationship between the macroeconomic environment and the national debt scale, the paper firstly analyses the theory of national debt and the development history of national debt scale in china. Then the paper makes analysis on the factors, which affect the scale of national debt, combined with the index analysis, to analyze the proper scale of China's debt, and put forward some relevant policy advice to improve the management of national debt.There are five chapters in this dissertation.Chapter one introduces the research purpose and meaning;Chapter two analyzes the history development of the debt theories, analysis on the connotation of proper national debt.Chapter three and four is the emphases in the paper, which make analysis on the, proper scale of the national debt in china. Analysis, both theoretical and practical, on the affect factor indicates the main reasons to the rapid expansion of national debt, which is the relatively low fiscal revenue over GDP and the repay burden caused by the accumulation of the national debt year by year. Research on the ability of purchasing and fiscal reimbursing indicates that, currently it still exists large issuing space of national debt considering the purchasing power in china. But the dependence on the debt of the central government fiscal dependence on the debt, the problems in the is to some degree high. Considering the national debt scale and the potential debt problems, the current scale of national debt in China has reach the alert verge. It's necessary to take measures to make adjustment and perfections on relevant management system.Chapter five puts up the basic idea and concrete proposes on the scale management of national debt. On one hand, it needs to further the reform on the finance and taxation system to get more fiscal revenue, On the other hand, it is mostly essential to optimize the structure design of the national debt and perfect the operation mechanism of it.