On Evaluation Index System And Appraisal Model Of Local Government Debt

The local government debt is thought to be a"two blades"sword by those scholars of the public goods theory. On the one hand, the local material and spiritual civilization con-struction will be raised if the debt input is appropriate, and the development of the local economy will be speeded up. On the other hand, improper debt input will result in debt-ridden, financial burden, and the most serious result would be the paralysis of the lo-cal economy. So the assessment on the investment performance of local government debt has great theoretical and practical significance. In one way, we can find the deficiencies in the process of borrowing debt & using debt & repaying debt, and appropriate measures will be adopted to prevent the occurrence of debt risks; in another way, the debt funds will play a role as a lever in the local economic construction under the local macroeconomic policies guiding.Based on the above consideration, a local government debt index system and an eval-uation model will be constructed in this dissertation. With the model we can evaluate the local government debt performance, and to make appropriate solutions and recommenda-tions.This dissertation is systematically illustrated in the following aspects. Firstly, the do-mestic and foreign issues on the local government debt and related theories will be com-prehensively reviewed, which can be prepared for the further research. Secondly, the initial index system framework will be set up by analyzing the meaning of debt performance and the operation mechanism to construct the evaluating framework of the local government debts. Thirdly, the final index system and evaluation model will be established by using factor analysis, and also it will be illustrated with an example, with solutions and sugges-tions provided. Finally, the full text will be summed up and further research fields will be proposed.According to analytical results of performance evaluation, combined with local eco-nomic development and present situations in debts, decision-makers of governments at all levers should take appropriate measures in an effort to prevent the occurrence of debt risks, and at the same time make the government debts play a positive role in the local economic development, thus causing the"two blades"sword—the government debts to be really em-ployed not only by the governments but also for the benefits of the country and its people as well.