The Study On Government Debt Risks And Countermeasures Of Shandong Province

Since the tax reform in 1994, with the re-dividing of the central and local property rights and powers, the local government financial ability shift upward. But with the deepening of reform and opening up, the country’s economic construction produced a huge demand for funds. Especially since 1998, China implement the policy of expanding domestic demand and a proactive fiscal policy for many years, local government spending is growing, and many local governments had to borrow money to survive in order to maintain a balanced budget, especially in the global debt crisis background. China government debt problems has also become the focus of academic research. In this paper, with the explains of the concept of local government debt and the formation of the reason, based on 2013 Audit of the Shandong provincial government debt audit results and the use of comparative analysis method, we compare Guangdong, Zhejiang and other provinces to conduct research on the size of the Shandong provincial government debt structure, characteristics and existing problems, such as systems analysis, drawing on the experience of domestic and foreign government debt management, and proposed to strengthen and standardize management and prevention of government debt risk countermeasures recommended the establishment of government debt management mechanism to achieve positive outcome, to better serve the local government functions and promote healthy economic and social development.