On The Risk Of Local Government Debt In China And The Countermeasures

At present，our local government debt scale is large，and there is a rising trend.Until June of2014，the total balance of local government debt in China reached17890866,000,000yuan in China. The local government debt problem has beenexposed，the research on local government debt problems and reasons have been toimminent stage.The local government is an important part of the national constitution，theharmonious and stable development of the local government directly determines thewhole of the country’s stability and unity. The local government debt problem wouldbring certain influence to the local government，the local government debt problemsand reasons need to be studied in time，it prevent problems continue to expand andaffect the development of social，economic，political and other aspects and so on.The contents of the article is mainly present condition analysis of localgovernment debt，then find the existing problems，causes of problems and theformation make further research. The article include five parts: The first part of thestatus quo in government debt are analyzed to grasp the structure and size of localgovernment debt; second part describes the expansion of China’s local governmentdebt reasons; third part of the conduct of local government debt risk analyze andorganize. Found that the presence of local government debt default risk, debt structureis complex, the risk of hidden debt, debt obligations or liabilities softening constraintsand debt risk transfer risk to the financial system and macroeconomic risks; Thefourth part of the international comparative explore ideas to prevent local governmentdebt risk；The last part talks about relevant measures to resolve and prevent localgovernment debt risk.