China's Local Governments Or The Debt Problems Of Study

Our country is in economy transformation period. The enormous fund demand, for promoting the developing of economy and paying to the reform cost, makes the requisition for government's public financing strengthen further. But the law of our country stipulates clearly that the local government can't issue bonds. In the face of fund insufficient seriously, the local government has by way of " pluralistic financing "and carries on a large number of legal or illegal debt financing activities making changes according to specific conditions. Thus the huge local government contingent liabilities formed. The government contingent liability is a kind of debt difficult to be appraised. As to such direct debts, its risk is greater. If not being held well, it would seriously influence the financial stabilization of locality and local economy's progress. Hence, the conscientious analyses and study of the local government contingent liability is significant to guarantee the sane development of the local finance economic and even whole national economy. Part one analyzes the content and peculiarities of the government contingent liability. The government contingent liability means that it is the potential expenditure justice of government that does not exist under any circumstance and just produces while happening in specific incident. The government contingent liability belongs to the social public risk category. And it can be divided into four categories. Including: the government explicit contingent liability and the government implicit contingent liability, the government systematic contingent liability and the government non-systematic contingent liability, the government endogenous contingent liability and the government external contingent liability, the central government contingent liability and the local government contingent liability. Uncertainty is an essential feature of the local government contingent liability. Because our country is in the special period that economy is going through transition, various kinds of situations are comparatively complicated. The local government contingent liability not only has the uncertain characteristic, but also having such characteristics as complicate, difference, transitivity, etc. Part two introduces the reasons and the economic effects of the local government contingent liability. The forming of the local government contingent liability mainly comes from the transition special background of economy, economic system perfection, local debt management and relevant legal system imperfect. In the period of the economic system transition , the local government contingent liability can be considered as a kind of finance arrangement of being carried on social resource distribution , income distribution and social economic adjustment. It has certain positive meaning. Because of the uncertain characteristic, the local government contingent liability is also a potential threat in local financial economic development. If not being held well and managed improperly, it will certainly bring a great deal of negative effect to steady development of local social economy, and bring out public financial risk, financial risk and political risk. Part three is to strengthen basic countermeasure for controlling and managing the local government contingent liability of our country. According to internal logic order of the controlling and managing the government contingent liability, this part points four basic countermeasure and suggestions The first one is deepening the system reform and keeping within limits of the local government contingent liability. The second one is perfecting the regulation system of relevant legal system to intensify institution obligation. The third one is strengthen risk sense about the local government contingent liability and down-to-earth heightening the management of the local government contingent liability. The fourth one is setting up the precaution system in advance and reserve fund to strengthen resisting ability.