Research Of Building Local Bonds System With Chinese Characteristics

March 2009, the State Department agreed to issue 200 billion yuan bonds by the Ministry of Finance, within the manegment of provincial budgets. This behinds 1998 China's central issue-lending local bonds, the central government once again by the way of issuing bonds to help localities solve the problem of inadequate financing. The difference is, this time the lending turn into proxy isssuing. This indicates that our system of local debt in trying a major step forward in the same way.In theory, local debt is the necessary component of modern state of financial management system and the government budget management systems. Western and other developed countries, whether federal or unitary state have established well-established and active local bond system, compared with the current system of national debt has been basically perfect, but the local bond system is still a blank.This paper introducts the current status of local bonds, with the historical summary and practical analysis of the current local government debt bonds of China, and with the aspects of local government official releasing local bonds autonomy prospect the debt system of the future. Peference the experience of western developed countries, especially United States and Japan, we urgent to build the local bonds systerm with Chinese characteristics.