Research On Local Government Debt Regulation Law

Local government debt as a main body is to point to by the local government obligation, liable debt service funds combined. Budget law specific provision in our country local government fiscal adhere to the principle of balance of payments, not borrowing. But, in fact, China’s local government debt has long been a problem.First, after the tax reform in1994.the central government and local government finance rights and the distribution is not reasonable, the central master a lot of money, but the great part of local governments tax should be turned over to the central Treasury, and then again by the central to local resources, but with the development of economy, the central government fiscal transfer payment can not solve the increasing local government fiscal spending, is where the lack of financial capital, especially in recent years, increasing the social security system reform and the tax reform, caused great pressure to local finance, and tax reform in1994promulgated the budget law specific provision of local governments may not issue local government bonds, So the local government had to borrow directly or indirectly through informal channels.Second, at present our country’s administrative system is in a transition period, from microcosmic, the excessive intervention of omnipotent government transformation into a macro, a service-oriented government. However, from the current actual situation, the reform of administrative system still exist many problems in the process, system of prominent is bloated, complex, which became a rigid fiscal spending, can cut down the spending cuts out, therefore caused a lot of financial pressure.Finally, because the government debt management and no unified organization, has formed a more common management the present situation of the government debt, due to the permissions and emphasis of each department is different, so can not meet the specification management effect.Mentioned in scripture, the roots of the local debt problem is to slow the basic reform of the system in our country, the system construction lag behind. From the point of political system, the central government and local government relationship has not been clear, the division at all levels of government powers chaos. The functions of the government positioning vague.From the point of fiscal and taxation system, there is lack of main body of local government of taxes, tax ratio obtained is too low, lack of transfer payment system and budget system of defects and other problems.From the point of investing and financing mechanism in our country, there is the ratio of local government investment is too high, the folk capital into the infrastructure field dysfunction, the spread of local investment and financing platform with internal system problems such as chaos. Above our government of various institutional defects influence each other and restraining each other, gradually form local debt problem.So the purpose of this paper is intended to reform the existing system fundamentally control and solve the problem of local debt, In the context of rule by law, through the legislative way above system reform is the necessary choice. Clear in legislation mode existing in the existing system of fuzzy, shortage, missing, keep integrity design of the basic system of government. To design and implement the laws and regulations effective security system, finally solve the problem of local debt.