The Research Of China's Local Governments To Issue Bonds

Local governments bear a large amount of the functions of Resources Allocation under the system of tax distribution in china. The great pressure that face the expenditures. The local financial income and transfer payments are rather limited. In that case, there is formed a great deal of debt gradually. Therefore local governments to explore the ways of financing, in order to ease the contradiction between supply and demand of financial capital, has become a concern of the parties.In the face of the plight of the debt, to issue bonds to finance local government to ease the contradictions between supply and demand of funds is an effective way. However, China used the bonds are issued by the central government, for local government bonds is strictly prohibited. Through a long-term practice, the local public debt has become a standard mode of financing. Now local governments are facing serious debt difficulties, should we stick to the provisions of binding or it should effectively ease, to empower local government to issue bonds to ease the debt burden of central government. It has become a matter that the China's economists generally concerned. It is for the above-mentioned concerns formed the power of writing this article.This article is divided into six chapters. Introduction to the first chapter, mainly on the background of this article, the real significance of the local government and local government bonds to define the concept of local governments to issue bonds, and so on the basis of the theory. II, III and IV, respectively, from the local economic effects of public debt, the experience of foreign countries and the need for conditions such as the following three aspects of our local governments to issue bonds to carry out a feasibility analysis, and Chapter V concluded that the design of the system at the same time relevant. Chapter VI is a comprehensive summary of the paper.