Research On Debt Of China's Local Government

The Budget Law of the People's Republic of China stipulates that local government is not authorized to issue local government bonds, but local governments at and blow provincial level have various finance actions which lead to the existing local debt in certain amount. Currently, the amount of local debts is getting more and more huge in our country. So the finance risk of local government has emerged. The finance risk has become a real negative factor of the development of local economy and other undertakings. If it is not proactively prevented and solved, it will seriously damage the stability of local finance and the consistent development of public finance.This thesis consists of four parts. The thesis discusses the concept of the local government debt and classification first, then comprehensive analysis the history of contemporary China's local government debt, present conditions and formation reasons. Based on all of this research, in order to prevent and solve local finance risk this paper provides different policy selections in solving old local debts, prevent unreasonable new debts, publishing local bonds and making a better control on local debts.