Research On Local Government Debt Risk In Heilongjiang Province

With the developing of China’s market-oriented economic reform, local governments get a larger internal reform and opening up economic autonomy, which effectively promoting the sustained and rapid development of the local economy. At the same time, under the gradual reform, various contradictions and risk accumulate and form, and become aggravate. In2013, the government debt problem is to become the research focus. Huatai Securities, China Merchants Securities and PingAn Securities have estimated that somewhere around15trillion debt scale, basically forming a consensus.In this paper, on the basis of defining the concept of government debt, from a financial view of Heilongjiang Provincial government debt problem analysis, figure that the debt risk may lead to the emergence of the Government’s financial crisis, therefore, put forward the theory of local government debt risk management. Through the introduction of the Local government debt risk management theory, propose the concept of a generalized debt, reveals that the local government debt risk is the risk of economic in a deeper level. Combined with the actual situation in Heilongjiang Province, analysis the status and characteristics of local government debt risk, sum up the four categories of debt risk, namely risk of deficit, the narrow debt risk, the benefit risk and manage risk, also point out Heilongjiang Provincial government debt risk factors include information asymmetry, economic factors and institutional factors, by using two general factors and specific factors. Which economic factors are summarized for the Heilongjiang provincial irrational industrial structure, lagging behind the pace of enterprise’s advantages and rigid financial expenditure; institutional factors summarized as the system of government investment and financing, the reform of the financial system, tax system, and financial income distribution system as well as the system of financial expenditure and budget management system. On the basis of the analysis of the causes of risk, in order to prevent Heilongjiang Provincial government debt risk, this paper states three policy recommendations, namely, to strengthen financial self-construction, the establishment of a solid and balanced financial management system; further reform and improve the risk prevention system requirements; further standardize the theory of Heilongjiang Provincial government narrowly debt.