In the aspect of theory about our local government debt risk’s regulation, systematic research on specialized legal supervision is not rich enough, and there is no authoritative conclusions. Local government debt defined herein should be based on the basic situation at the present stage, within the scope of the provincial level and lower, which complies with legal and contractual requirements, and ultimately the local government which raised debt also is the main body of repayment should bear the main responsibility for the entire debt.The risk of local government debt existence, including the scale of risk, structural risk, efficiency risk and external risks. In practice, the life of there are three major regulatory bodies having direct effects:the Ministry of Finance and other relevant regulatory authorities, local government and financial institutions. The main regulatory roles participating in local government debt risk includes local government, financial institutions, finance department and relevant regulatory authorities. There are many supervision problems in our local government debt risk, such as, Unbalanced regulatory standards, Disguised bonds, negative effects caused by improper regulation. Meanwhile, in legal regulatory system of China’s local government debt, Lower legal level, the lack of the Basic Law, Legislation lags behind, a lack of systematic and scientific exists. The new "Budget Law" gives local government a modest lift in the debt, which helps to regulate the local government debt management, but there still exists some problems in regulation of debt risk.Studies cibout Legal Supervision System of representative national local government debt risk have shown that all countries have established the whole process of regulatory mechanism, includes supervision in advance, in process and afterwards, which provide comprehensive, multi-level and wide-ranging supervision on local government debt. Supervision in advance includes reasonable division of the central and local financial authority and powers, building the budget management system, establishing a debt guarantee mechanism and constructing a credit rating mechanisms; supervision in process includes the establishment of regulatory supervision and audit department, the mechanism construction of local debt risk warning and the establishment of dynamic information disclosure system; supervision afterwards is mainly based system of the commitment of liability.In order to improve legal regulation on our local government debt risk, we need to establish complete legal system. It is necessary to establish a scientific system of taxation laws, to ease the financial burden on local governments, to promote the "Budget Law" to further improvement, to enhance the legal level and eventually to form the legal system.Combined with China’s specific situation and implement of new "Budget Law", we can establish the whole process of regulatory mechanism. Advance preventive system should focus on the construction of local government debt risk prevention and control, including further improvement of the government’s credit rating system, the establishment of local government bonds hearing system. Regulatory system in process includes the division of power and responsibilities, debt information disclosure system and the establishment of risk warning mechanism. Supervision afterwards system should include promotion assessment mechanism, accountability mechanisms and debt protection system. |