Research On The National Debt Policy In The Western Development

At the beginning of the century, our government timely advanced the strategy about Grand Development to the West of China (GDWC). There will never be development without government's action, especially when GDWC now is an anti-marketing adjustment and a remedy to marketing defects in a sense. But premising that financial resources are limited and tax income cannot increase by a big margin in a short time, the new issue of national debt becomes the only outlet. So N.D policy plays a very important role in the early days of GDWC. How to make sure N.D policy accomplishes its mission is this thesis's purpose.The thesis firstly analyzes the necessity and the time-restriction of issuing national debts (N.D) based on the introduce of western research accomplishment on N.D. Next this paper studies the N.D policy during the course of GDWC, and the experienced study concludes that the N.D policy greatly increase GDP and optimizes the economy structure in Western China. Part 3 focuses on the problems existing in N.D policy for GDWC, such as the funds shorted for the fading out positive fiscal policy, the ineffective use of N.D funds invested in Western China, the difficult returned N.D fund which is re-loaned, on the scale of N.D of GDWC government and the possible risks would be brought by the large scale. Lastly the policy suggestions for GDWC are given at the end of this paper. N.D will still the optimal choice sustaining GDWC in the near future after the fading out of positive policy; While in a long time, it will be the main task of taxation; N.D re-loan system be reformed and local government debt be allowed in these regions where there are necessary conditions; Government should advanc benefits of N.D fund, such as assuring the local funds matched in time, sanity the time structure and variety structure of N.D, mending the issue and repay fashions and setting up the repayment fund of N.D.