The Research Of Local Government Debt Management And Problem

With an economic crisis and growth of economic slowing, to the government itbring much pressure, in order to promote the economic growth and to recovery, thecentral government and local government chose to use investment, it can drive toeconomic growth. All the levels of government investment plan beyond the budgetincome, to finance had to make up the shortfall, as a result of the government to makeends meet and deficit spending, local government debt. After the audit, audit of localgovernment debt related audit results were announced in2011,.Immediately the onlineresults revealed that caused a heated discussion, all the urban and rural residents fearedthat debt, it will be due for payment, if there is a phenomenon that the government’ can’tcontrol the debt. In l2013, the national audit office publiced the audit results, the resultis about the concrete conditions of local government debt. Whether local governmentsexist disregard attitude, if can’t meet will definitely affect the government’s image andreputation, it will be affected sustainable development. Clearly the current localgovernment debt problem that nots allow to ignore, caused by the local government debtrisk management and prevention should be implemented. Relative ease monetarypolicy easing and fiscal policy, adding more local projects, incur debt is creeping up,sheet beyond the line of risk, huge debt affect the efficient and effective operation of thelocal finance. Based on the hidden trouble existing in the current local government debt,local government debt become to a very important topic.This article is divided into five parts. First an overview of the theory, what is thelocal government debt, a few kinds can be divided intoconcretely, defines the debt riskof local government. The second part discusses the debt risk of local government, and thespecific situation at present, deep analyze the hazard and risk. The third part analyzesthe problems of local government debt risk, and from our country’s financial system, thefinancing platform, the administrative system, the government’s policy to cause analysis,etc. The fourth part, Japan, South Korea, Brazil and other countries of local debt to carryon the simple introduction, how to manage the risk of local debt and respond to,warning, our country can learn advanced experience from the her contry. The fifth part,the existing problems, and puts forward the improvement measures and managementmethod.