Investment And Financing Of Local Governments In China's Tax System In The City To Vote Bonds Research

Quasi-municipal Bond is a kind of alternative financing method existing under today's specific economic situation of China to avoid the limitation of related Law. It is also featured as a financial innovation. As an analogue of Municipal Bond under the fiscal system, Quasi-municipal Bond dissolves the problems of municipals'lack of capital. However, during today's high-speed development of China, Quasi-municipal Bond begins to show quite a few problems gradually and arouse a wide concern. Further research into Quasi-municipal bond has a prolonged economic and political significance for ruling its proper development, deepening the reform of our economic system and municipal financing mechanism, boosting municipals' construction and accelerating the development of China's economy.In recent years, our educators and experts have done a lot of research on China's fiscal system and municipal bond. Most of their jobs focus on the introduction of foreign countries' experience, contrast between ours and foreign practice. Through analyzing china's municipal economic development, they put forward the necessity and feasibility of our adopting the practice of municipal bond from foreign countries. With respect to our special Quasi-municipal Bond of the time, there is fewer introductions of it and systematic research on it. This paper is in hope of providing a frame work of its theory and practice, relating to the cause, the feature of our practice and the future development of Quasi-municipal Bond.This paper is outlined by "the revenue-sharing reform, investing and financing of local governments and Quasi-municipal Bond", which is to carry out the analysis and research on the mechanism, current situation, the ongoing problems and suggestion on the future development of Quasi-municipal Bond. Firstly, this paper gives a brief introduction of the basis of Quasi-municipal, and defines its characteristic. Next, this paper adopt the combination of positive analysis and normative analysis, demonstrate and analyze the current problems existing in Quasi-municipal bonds. The existing problems are related to incomplete reform of revenue-sharing scheme, imperfect financing system of local governments and unreasonable operating method of Quasi-municipal Bond. Quasi-municipal Bond is the market-based ways of operation that mixes the fiscal financing with financial investment well, which is in accordance with the trend of reform of local governments'financing system. It is more beneficial than detrimental. Therefore, this paper propose to adopt a policy that paving a way for but not limiting the development of China's Quasi-municipal Bond and has Quasi-municipal bonds develop properly. When internal condition is ripe enough especially including some basic legal system, we begin to advocate the implement of real municipal bond gradually. In the progress, we have to come up with the detailed suggestion as for the coexistence of Quasi-municipal bond and local governments issuing municipal bond directly. Finally, this paper based on insufficiency of research summarized, gives an outlook for the future direction of researching and improvement of methods.