International Comparison And Reference Of The Local Governments Bond: Based On Intergovernment Fiscal Relationship

Looking from the development of local government bonds throughout the word, whether a federal state, or a unitary state, so long as there having the fiscal decentralization, central government should empower local governments with the right to issue bonds. After the tax-sharing system in china, the intergovernmental fiscal decentralization relationship has already existed, so empowering local governments the right of issuing bonds is the important method of perfecting the public finance reform. In view of the status of the current slowdown in China's economic growth, weak domestic demand and low investment in urban infrastructure, issuing local government bonds is a feasible selection for active fiscal policy transformation, and it opens new channels for the huge financing needs of urban infrastructure. This article selects the United States, Germany, Japan and France as the sample countries. In order to make the sample more representative, in terms of the development of local government bonds, the sample not only include that the municipal bond market is relatively mature and well countries like the United States, the local bond system with central government intervention feature like Japan, but also include the intermediate-based financial system like Germany and France. In terms of the form of state structure, the sample covers both the unitary state and the federal state. First, the paper start with the comparison and discussion of the similarities and differences of local government bonds among different institutional countries. Then, combined with the intergovernmental fiscal relationship, the paper compares and analyzes the universal law of debts of local governments. Finally, based on deeply study of intergovernmental fiscal relationship of China, the paper provides a feasible evolution path for issuing the local government bond in China.