Countermeasure Analysis Of Local Government Debt Risk Management

In recent years, China local governments actively resolve local debtfinancing platform scale control, regulate banking and financial system,support for local governments issue bonds to broaden the financingchannels for local government efforts to address the growing place oflocal government debt. This is due after the financial crisis, the proactivefiscal policy and the implementation of large-scale borrowing countries tosome extent, while supporting economic development, but because ofChina’s current market economy law is not perfect, asymmetrical powerand financial power of local, local reduce government revenue, for olddebts still new debt, the stock of government debt is too high, affectingthe economic development and social stability.Purpose of this paper is how to resolve the local debt risks, fromconcept development process of local government debt, the researchstatus of China ’s local government debt, the main problems, GansuProvince on debt risk risk assessment, using a combination of empiricalnormative analysis approach to local government debt to explore andresearch. In theory debt to budget about theory, theory of excessivegovernment borrowing, risk early-warning mechanism to explain thesignificance of local debt. Learn from experience about the foreign debtrisk prevention, based on the proposed feasibility analysis of localgovernments to issue bonds to improve government transparency, and actively reduce local government debt, improve the system andstrengthen the establishment of an early warning mechanism debt risk,innovative financing mechanisms for local government to prevent andcontrol risks of local government debt.