Study On China Local Government Debt Risk And Prevention

Since the tax reform in1994, the central and local property and allocate is not clear, a lot of local government can’t rely on financial budget and transfer payment bear the expenses, plus budget act on local government debt strict limit, make some local officials debt through informal channels, in order to solve the financial deficit. In addition, in the economic system reform process, the state-owned enterprise bad assets and social security funds expenditure increase, resulting in the increase of local government stealth debt. Especially in the financial crisis after the occurrence of a moderately easy monetary policy and proactive fiscal policy background, the local government for economic recovery take large-scale investment and financing, to a certain extent, cause a large number of new local government debt. The present stage our country local government debt question is particularly outstanding, and in this paper, through this research, with its place for solve debt problems and provide data support, and ultimately realize the local government debt to the comprehensive governance of the problem.The local government debt problem if not dissolve, certainly will be restricted the healthy development of the our country economy significant hidden danger, the financial crisis happened after the Greek sovereign debt crisis and dubai debt crisis and, more recently, wenzhou usury collapse events for our local debt problem was a wake-up call, on the other hand, because of many scholars tend to from the national level analysis economic risk and government debt problem, the local government debt problem less literature, therefore, research the problem both has the important practical significance and has certain theoretical significance.In this paper, the problem of local government debt risk study. The first chapter is introduction, mainly elaborated the research background and significance of the research, and the local government debt risk problem of the research. This part mainly from domestic and abroad in two aspects of local government debt risks related theory to review, and analyzed the current local government debt risk research present situation and the mainstream thought. The second chapter to the fourth chapter in to our country local government debts scope definition and classification on the basis of study, combined with A city and X county situation, analysis of the present stage of China’s local government debt risk performance, explore the debt risk of local government on the cause of formation of the, explore the root of local government debt risk. The fifth chapter presents foreign countries to solve the unitary system of local government debt experience for reference. Chapter6, puts forward the countermeasures to the local government debt risks related policy Suggestions.