Research On Internal Control And Risk Management Of Local Government Debt

In recent years, with China’s rapid economic development, local gove rnment debt atall levels of our scale is also increasing, the debt risk of local government debt risk controlalso gradually become a hot and difficult problem of academic study. From the causes of localgovernment debt on watch, the fundamental reason is because China’s financial managementsystem and fiscal investment and financing system of local government financial constraints,the direct cause is due to the irrational behavior of local government to seek performance anda lack of local government debt risk control. Therefore, to resolve the debt risk of localgovernment, on one hand needs further reform, it needs a long-term gradual process, on theother hand, the local needs of local government debt risk control measures suitable for localarea, which is the current problems to be solved in each place.This paper uses the norm research method, based on local government debt risk controlthis urgent problem, first from the analysis of the present situation of Haishu District ofNingbo City, the local government debt of reason, research, Haishu district local governmentdebt formation in the presence of a risk, so that the current lack of risk control. Secondly, theinternal control in local government debt risk control effect is studied, introducing thenecessity and possibility for the internal control theory and method in local government debtrisk control. Thirdly, study on internal control of local government debt risk control target,control principle and risk control of these elements, the author try to construct the localgovernment debt risk control system theoretically. Finally, the current local government debtrisk control research, put forward the corresponding control measures, and make it a whole,thus forming system, long-term control mechanism of local government debt risk.The main contribution of this paper is using the theories and methods of internal control,in the local government debt risk control target, control principle and guide the five elementsof internal control, internal control from the control environment, risk assessment, controlactivities, information and communication and supervision five aspects analysis and putforward including good local government debt risk the control environment, risk earlywarning process, indicators and assessment methods, deal with the debt risk control activities,the debt risk control in the process of information and communication, the debt risk ofcontinuous supervision mode which aspects of the application of measures, try to establish along-term mechanism of local government debt risk control.