The Countermeasures Study Of Our Local Government Debt Risk Management

With the development of society and economy, the local governments increase investment inorder to improve their infrastructure of the city, make the economy to have a better developmentand carry out the central government’s fiscal policy. In the case of insufficient funds, localgovernment can only receive money through the local financing platform. But there are somegovernments just for their “achievements project” among them, all in all, there appear thephenomenon that many local governments are on debt heavily for various name. Many localgovernments’debt scale is growing, the problem is outstanding increasingly, but many localgovernments have not set up the impeccable debt management system yet, so there exits a big debtmanagement lag, and various management problems have gradually emerged, such as the lack ofdebt issuance system, the lack of debt scale control mechanism, the lack of debt risk early warningmechanism, the lack of supervision and management mechanism,and the lack of repay andresolving mechanism,etc. The emergence of these problems aggravate the debt risk in turn, itmakes the debt management stuck in a vicious circle and affects the healthy development ofeconomy and social stability. As a result, the study of China’s local government debt managementstrategies is particularly important.In this thesis, based on the countermeasures of China’s local government debt management asthe research object, it proposed debt management countermeasures in five aspects: build the bondsystem; strengthen the debt scale control; strengthen debt risk management; strengthen debtsupervision and management; build debt repay and resolving mechanism. Building bond system isin order to make China’s local debt leverage conform to standard, to manage the local debt from thesource; Proposing the countermeasures of strengthening the debt scale control mainly aims atresolving the problem of local debt scale and avoiding appearing such kind problem again when thelocal government have new debt; The countermeasures of strengthening the debt risk managementdiscusses from two aspects, defining debt risk responsibility and building risk early warningmechanism, manage the debt risk well in order to low the debt risk and avoiding the debt crisis;Strengthening debt supervision and management, according to the gap of our country’s local debtmanagement, perfect and sound it from three sides, the administrative,the laws and regulations andthe market supervision; Building a scientific and normative debt repay and resolving mechanismshould set up reserve fund for debt service and take advantage of the income from transfer thestate-owned assets property rights to resolve the stock of debt.