Research On Index System For Performance Evaluation Of The Fiscal Expenditure

Since the tax distribution system reformation carried out in1994, it is becominga distinctive contradiction that the financial rights and the powers between the centralgovernment and local governments. Before the local Governments’ Bond arelaunched,Issuing bonds by local governments is not permitted in budget law of China,and therefore a new kind of government financing mode named Quasi-municipalCorporate Bond has been created to escape the law restriction. It is significant tosolve the fund shortage problem of local governments and is meaningful to speed theconstruction of urbanized basic facilities. However, as the Quasi-municipal CorporateBond is issued large-proportion, there has been a great concentration on the risks ofthe bond from investors and government sectors. With the coming of the debtrepaying peak, it becomes an urgent priority to investigate how to strengthen the riskprevention in the field of Quasi-municipal Corporate Bond.This essay mainly studies the reason of risk and risk prevention about theQuasi-municipal Corporate Bond.The essay firstly studies related theories aboutQuasi-municipal Corporate Bond, and defines the character of it. Then it brieflysummarizes the appearance and development of Quasi-municipal Corporate Bond.With data from2009-2010, the present situation is studied in detail. For grasping thereason of risk from the source, the fourth chapter firstly studies the bond issue modewith example of cases, and then from the present situation and the issue mode, theessay adopts the combination of positive analysis and normative analysis, andanalyzes the main reason of risks. It includes the absence of distribition, supervisingand management, the immaturity of credit system, over-amount of distributionproportion, overestimate of overall capital, weakness of sustainable developmentability, immaturity of the market development of corporate bonds and so on. Lastlyfor the reason of risk, the essay proposes the solutions of risk prevention which arebased on the experience in risk prevention of the USA and Japan. This essay thinksthe development of the local governments’ bond should be based on the complementof the Quasi-municipal Corporate Bond. The study of the Quasi-municipal CorporateBond entails great significance on strengthening the management of the government’sfinance and on exploring the principles of local governments’ bonds.