Perspective Of Local Government Debt Governance Performance Research

In recent years, the total and the scale of the debt of local government have been expanding. Many scholars and national leaders attach great importance to the study of the debt of local government. The debt of local government is a double-edged sword. On the one hand, the debt of local government can promote local economic development, can provide sufficient funds for local government to construct their infrastructure and so on to improve local public goods and can contribute to improve the quality of life of local residents. However, if the total and the scale of local government are too large, it will increase the risk of the debt of local government and will have a potential negative impact on the local government performance. In theory, the debt of local government and the performance of local government have a certain relationship. Therefore, this article has a analysis about the relationship between the debt of local government and the performance of local government with the method of empirical analysis. Firstly, this article selects respectively the index system evaluating the debt of local government and the performance of local government according to the basic principles of comprehensiveness, comparability and sensitivity and so on. Next, this article screens the index system evaluating the debt of local government and the performance of local government using the method of principal component analysis to reduce the correlation between the selected indicators. And then this article has a analysis about the relationship between the debt of local government and the performance of local government using the method of canonical correlation analysis. Among the indicators evaluating the debt of local government, the indicator of the rate of debt burden, the ratios of direct debt and the current total of the principal and the interest of local government have a greater impact on the performance of local government. According to he results of the study and the actual situation of our country, this article gives some measures to improve the performance of local government from the perspective of the debt of local government. Firstly, the measure is made starting from strengthening the management of the debt of local government, namely the local government should assess the risk of the debt of local government, build the risk warning mechanism of the debt of local government and establish the management system of the debt of local government. Second, the local government should establish the high performance management system. To be specific, the local government should improve the indicators evaluating the performance of local government, supervise the management of the performance of local government and establish reasonable debt financing channels of government.