The Study Of Issuing Local Government Bonds In Our Country

With the gradual perfection of tax-points classification financial system、 furtherperformance of the city-government function and deepen of capital market, it will be ainevitable choice to open and develop our country’s local government bond’s market.Therefore, the study of this problem is with high prospective、reality and challenging.At present, the study of our government’s local bonds mainly focus on that should ornot issue them as well as the feasibility and necessity of issuing. There are very few researchpoint starting redemption of local government’s bonds, especially the unspecific descriptionon every detailed progress in issuing system. So this article is in reference to previousresearch results, to make overall design from the prospect of system standard.The article is on the basis of defining relevant concept on local government, make asummary and comment on the study of local government bonds of the theoretical basis, whichincluding public products theory、public bond’s theory、 fiscal decentralization theory. Afterbrief analysis of the practice in United States and Japan, it points out to our country thereference and enlightenment. On the basis of theory research and practice reference, it selectlyanalyse the feasibility and necessity of issuing local government bonds. Then come to aconclusion that we should issue local government bonds in our country through deepenanalysis on the behavior of treasury department replacing of issuing bonds. The sixth part inthis article tells the detailed system-designation on the issuing local government bonds, firstlyfrom the issue principle、issue party、kinds of issue、issue duetime and rate、issue anddistribution way as well as evaluation and so on to design the basic frame on the issuing localgovernment bonds. Subsequently to avoid publish risks from three aspects: building localfinance early-warning system、controlling the issue scale in scientific way defining the usageof the bonds and fund. Finally, direct at the problem in the performance of local governmentbonds in reality to put forward such as follows series of supporting measures: Improving thelegal protection of issuing local government bonds、establish of fund use and managementsystem to repay the safeguard mechanism, establish a scientific risk control mechanism.