Research On Local Government Debt Risk Problem In China

China’s current budget law clearly stipulates that local governments may not preparing budget deficit, may not issue local bonds. But in real economic life, there are still various forms of local government debt, and size of the debt in recent years, a sustained growth trend. The continued expansion of the scale of local debt, there are not only financial risks and financial risks, but also through currency and interest rate transmission, there is also the risk of inflation and economic growth pressures. Especially in recent years, frequent outbreaks of the European debt crisis, China’s local debt risk issues has aroused great concern. In this context, this thesis of local government debt risk as the research object, for the strengthening of local debt risk management and achieve sustainable and healthy development of China’s macro economy has important practical significance.The article first proposed in accordance with the audit risk assessment indicators, the size of local debt and risk analysis and evaluation. Secondly, it analyzes the formation of local government debt risk reasons, mainly financial system is not perfect, debt management is not standardized reasons, there are also economic and administrative management system is imperfect, flawed laws and regulations, and other reasons. Again, in view of local government debt in the management deficiencies, mainly for the United States, European Union, South Korea, India and other countries in the areas of debt management on the successful experience obtained at the local debt management on some inspiration. Finally, on the basis of the above analysis, obtained local address our current debt risk countermeasures and methods. The general idea is:According to the formation of local government debt risk for various reasons, to take various measures to eliminate the debt accumulated before the strict control of the additional debt will stabilize the overall size of the debt in a reasonable range, so that the local financial to sound and sustainable operation. In the method specifically includes improving our local debt management system, accelerate the improvement of the financial management system, deepen economic reform, accelerate administrative reform and other aspects. In short, concluded that local government debt is moderately useful. China’s current local government debt risk is controllable. By deepening reform and the establishment of a transparent, standardized and effective mechanism for raising local debt, local debt can still effectively serve the local economic development.