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On Local Government Bonds Issued In The Western Development

Posted on:2003-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:Q YangFull Text:PDF
GTID:2206360092986940Subject:Public Finance
Abstract/Summary:PDF Full Text Request
The issuance of Local Public Debt(LPD)is a popular practice in many of the developed and developing countries in the world. In recent years, the national debt of our country has been expanding in quantity repeatedly and is playing a more and more important role in our central government's macro-control policies. While at the same time, our present budget act clearly forbids the issuance of LPD. In the light of the fact that China is advancing reform and opening and our national economy is experiencing an all-around development, especially faced with the upsurging development of the western regions of our country, whether relevant provisions appeal to the need of current situation is worth discussing for us.With regard to this topic, the thesis argues that China should grant local governments the authority to issue LPD. It conducts a systematic discussion out of four perspectives i.e. necessity, feasibility, structural design and subsidiary measures in turn.There lie two main trains of thought in this paper:1.Combine the generality of all regions with the particularity of western onesIn the process of discussing necessity for the western regions to issue LPD ,this combination finds its strongest embodiment.First, the paper discusses in general the necessity to grant local governments the authority to issue LPD from seven angles i.e. the reform on tax system, public finance and functions of local governments, improving the efficiency of operating financial funds, relieving the pressure on our national finance, reducing the local financial risk, the inherent demands of modern market-economy, and active financial policies.Second, in view of existing situation in Chinese western regions , the paper analyzes why these regions should be granted the priority to issue LPD from two points, which are serious imbalance between the supply and the demand of fundsand inequality in financial authority between the eastern and the western regions.2.Combine our country's actual conditions with foreign advanced experience to propose specific applicable policiesThis combination mainly involved in the structural design and suggestions on subsidiary measures.The paper selects the U.S. and Japan as two main foreign sources for our country to refer about the experience of issuing LPD, and assimilates the issuance experience of our own national debt. It makes a design for LPD of the scale, variety, way of issuance, subject and object of issuance, rate of interest and selection of time to issue. Besides that, the paper proposes four subsidiary measures, which are to enact and amend relevant laws and regulations, check the amount of present liabilities, construct and improve a management system, and build up the bond market of our country.In addition, as a new thing not born yet in our country, LPD has inevitably incurred some doubt and misgivings. So in discussing the feasibility of LPD in China, three main adverse views are disputed after objective conditions have been analyzed.
Keywords/Search Tags:Local Public Debt, Development of Chinese western regions, Experience of the U.S. and Japan
PDF Full Text Request
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