Investigation And Reflection On County Government Debt

Local government debt as a means of financing local government, although has not yet obtained the official approval in the legal status, but had already played the very important role in China's local economy development. County government, through debt financing, accelerated the pace of construction of small towns, increased urban and rural infrastructure investment, stimulating economic growth, but also caused it to have the heavy debt baggage at the same time. The author served on the treasury department of the People's Bank for a long time in D county, witnessed the grass-root financial revenue and expenditure situation of distress, because the government goes into debt, the different law-enforcing departments want to seal up the local finance money in treasury account several times, has a more profound understanding to the county government debt's harm. Speaking of the D county, its government debt showed a large scale, high rate of late, the channel complex, involving a wide range of a long history and other features. The county government debt with the above characteristics disturbed the country to the macro economic regulation, reduced the quality of economic development, and has evoked a potential risk of financial risks, also caused the government and populace's direct conflicts of interest, destroyed the government image, has affected the credit environment construction, was not conducive to the realization of building a harmonious socialist society objectives. Because of the scale of county government debt is too large, no matter selects what handling method, will create a new social injustice. The county government debt's formation and existence have its inevitability, for the performance of county revenue growth rate far lower than the national fiscal revenue overall increase, the local government level, the area and population distribution not quite rational, financial support staff too much and so on. But the debt forms also has the artificial subjective factor to play the secret decision role, such as performance assessment methods into the mobilization order of the county, county government regards government borrowing as the welfare, the higher government and the local related department to the county government debt surveillance dynamics are insufficient, creditor to debtor credit rating difficulty and so on. To control the government debt in the county governance, the urgent matter should be cleaning up the verification of the debt, clarifies its real situation, and then according to the actual situation of economic development, carries on the optimized compression. But from the perspective of long-term to control County government debt still need from the legal norm, the improvement of the mechanism of supervision and inspection, the modern government system's restoration ,the perfect of transfer payment system and other aspects of a healthy start in all directions. Omni -directional, eliminated the government debt harmlessly theory of local authority, the government department, the chief leader of local party politics and the department people in charge, fundamentally ceased the county government debt being in flood once again.