A Research On The Local Government Debt Risk Control From The Administrative Supervision Perspective

In recent years,under the investment led economic growth model,China’s economic construction has made achievements attract worldwide attention.In the dazzling achievements also hide a lot of problems, including local government debts. In order to solve the problem of the growing demand for construction funds, local governments at all levels began to borrow a large amount of debt from the government debt and since then the local government debt problems arised. Although those institutional problems like the halfway tax allocation reform, the unreasonable transfer payment system and the unsound information disclosure mechanism can give rise to local government debt problems, it is more because of those subjective reasons like official assessment and selection guided by GDP, and the weak supervision caused by the centralized administrative power. Debt crisis is prone to be triggered if those serious local government debts could not be properly handled. Thus, how to effectively guard against and dissolve the local government debt risk has become the focus of the society.The government debt problem is rooted form local government borrowings. On paper, this leverage is a specific administrative act implemented by the local government under the domination of executive power. According to the constitutional theory, the restriction and supervision of the administrative power is indispensable in realizing a constitutional government and it is also the core of building a law-based government. The internal supervision of administrative power should be the focus of strengthening the administrative power restriction. As a special organ operated to supervise and inspect party organizations, party members, government agencies and official employees, the discipline inspection organs perform the dual function of party discipline inspection and government administrative supervision, in accordance with the provisions of the "party constitution" and the "administrative supervision law", and these organs also play an irreplaceable role under the Chinese characteristic political system. For this reason, those thesis carry on a research in local debt risk prevention and control from the perspective of disciplinary inspection and supervision. The inclusion of local government debt risk prevention and control in the view of discipline inspection and supervision can not only regulate the behavior of the government’s borrowings, but effectively deter the government officials’ fearless and casual attitude in the borrowing process. Moreover, by punishing those Government officials in the violations of the problems in the process of debt operation and penalties, let them more careful in dealing with a government debt, internal supervision from government to reduce and resolve the debt risk of local government. Moreover, by punishing those government officials who violate laws or disciplines in the process of debt operation, they can be more careful in dealing with government debt, thus the debt risk of local government can be reduced, even resolved from government internal supervision level.