Research On The Management Of Local Government Debts In Our Country

The Budget Law of the People's Republic of China stipulates that" local budgets must be drawn up on the Principle of living within our means, balance of payments, the deficit is not out". Local governments are not entitled to borrowing in the legal level at this stage in our country. But local governments at and blow provincial level have various finance actions which lead to the existence and growth of local debt in reality, These years, there are serious problems about local government debt in the aspect of structure, scope, management, repayment and so on. It troubles finances at all levels seriously, and has become a major hidden danger which restricts the development of local economy. Under these circumstances, the research on the management of local government debts is very realistic.This thesis consists of six parts. The first part is an introduction. It defines the background and significance of this thesis and introduces the current research in home and abroad. The second part expounds the Public Debt Management Theory and the principles, objectives and methods of Asset Liability Management Theory. The third part analyses the classification, characteristics and functions of local government debt based on defining the meaning and form of local government debt. The fourth part introduces the structure, scope, management, repayment of local government debt currently and in-depth analyses the causes of these problems in our country. The fifth part puts forward effective measures to rectify and regulate local government debt from the perspectives of security, profitability and liquidity. Finally, it summarizes the main findings of this article and points out the innovation and the lack in the research.