Research Of Legal Regulation On Local Government Debt —Perspective Of Comparative Law Between China And America

In order to play to their functions, local government often require debt financing to the community and infrastructure construction, meanwhile, the way of debt financing should be subject to legal regulation, otherwise government debt management will be chaos. Debt financing of local government in China has been in legal gray zone for a long time, different kinds of government debts make our local government facing huge financial risk. Since the reform and opening up, in order to improve infrastructure and people’s livelihood, China’s local government borrowed a lot of debts, report of the NPC Standing budget research group showed that by the end of 2014, the total size of local government debts has reached 24 trillion, the huge volume of local government debts and the chaos of legal management has threatened the healthy of the sustainable development of China’s economy.Facing the chaotic management of local government debts, the NPC Standing Committee modified the Budget Law in 2014, empowering local government issuing bond to raise money, following the new Budget Law, the State Council of China and Ministry of Finance released a series of laws and regulations on local government debt management, these laws and regulations clarified the way of debt financing and principles of local government debt management.Our country make great breakthrough in legal construction of local government debt, but we must also clearly see the shortcomings of current laws and regulations of local government debt management. Facing the shortcomings, we need to improve current legal system so that our legal regulations of local government debt management could achieve the desired effect. In order to improve our current laws and regulations of local government debt management, we need to reference some regulations on local government debt management of developed countries. After reading some documents describing other countries’law system of local government debt management, the author choose the laws and regulations of the United States as the comparatively research object, the first reason why choose laws and regulations of the United States to research is that the law system of American in this field is the most complete, the second reason is that the articles which the author can get describing the law system of local government debt management of United States is the most detailed of all.Through the way of comparing and analyzing the laws and regulations on the local government debt management of China and the United States, the purpose of the article is to provide practical advice to the construction of our current legal system of local government debt management. In order to achieve the purpose, the author arrange the following writing frame:the first chapter introduces the concept of the local government debt, laying a good foundation for the analysis of specific legal system below, the second chapter and the third chapter is the detailed comparison and interpretation of the law system of local government debt management of China and the United States, on this basis, the author provide some suggestions to improve our current laws and regulations in the field of local government debt management in the fourth chapter.Most current articles about laws and regulations on our local government debt management appear before the new Budget Law empowering our local government issuing bond, so I wish this paper depending on the new regulations of local government debt management could provide some new advice for the legal regulation of local government debt management.