Research Status Of Local Government Debt And Audit Supervision

Currently, the financial system all around world are implementing hierarchical management method, as one of the main contents, local government debt management causes great concern all over the world as well as in domestic society. Debt crisis needs to take strict precautions against and effective dissolve; the fiscal of local government and investment&financing system needs to promote and deepen; the scientific outlook on development and macro-control system needs to implement and improve; in the rapid development of China’s economy is also an urgent need to further promote, how to strengthen the management of local government debt and perfecting the system of local government debt management are the important issues of complete those in processing tasks. Due to the basic national conditions in countries around the world is not the same, not only restricted by political, financial, economic system, but also by the development of capital market, different social evolution, historical change and the influence of various factors, therefore, the mode of local government debt management is differ from each other in a thousand ways.In recent years, with the rapid development of China’s economy, influenced by many factors, such as political and social systems, the scale of China’s local government debt showed a rapid growth trend, debt risk has become increasingly prominent. Circumstance of two large-scale local government debt auditing by the National Audit-Office of the People’s Republic of China and statistical data published by the National Bureau of Statistics of the People’s Republic of China shows that China’s local government debt is already very widespread dominance, size of the debt can not be underestimated, has reached the highest level in history. At the same time, the size of the implicit debt is also expanding, because of its particularity and concealment, has become a big hidden danger in the process of our economic development. Massive local government debt not only to the national financial enormous pressure, but also seriously affect the operation of the country’s financial system, its social stability, economic development had a major impact, but also become the focus of community concern.The duty of auditing organ is to escort the development of national economy, give full play to the "immune system", and have to play its proper role in the prevention of local government debt risk, safeguard national financial security and guarantee the sustainable development of economy.This article compares the differences and similarities of status of local government debt management both in domestic and overseas, and summarizes advanced practice and effective experience of local government debt management in different countries. Evidence-based on the Inner Monglia autonomous region, through analysis and research by the area of local government debt findings, revealing problems of local government debt management, analyze the causes, and gives reasonable policies proposals from the perspective of the audit in order to effectively prevent local government debt risk and improve efficiency in the use of debt capital, restricting the powers of local government administration, and promote sound debt management mechanism, and make due contributions to China’s economic development.