Study On Risk Prevention Of County Government Debt

In recent years, with the further development of industrialization and urbanization, the local government is confronted with a growing money demand for economic construction. Because our country’s local governments have less money and are restricted by law like "Budget Law", local governments only can raise debt by other methods. The county governments gather a lot of money by debt. These funds are good for the development of the county’s economy, which bring a large number of high-quality assets, improve the living standard of the local people, and promote the cause of people’s livelihood. Due to the various levels of economic development in diverse regions, the county governments in developed regions have adequate money to pay the debt, while the country governments in less-developed regions can’t afford it. There are many problems in the management of local governments’debt in China, and so as the situation on debt management of the local government. The reasons for local government’debt risk are various, because local governments’debt is complex. A lager number of debt, unreasonable debt structure, inefficient use of funds, and some other reasons all can cause debt risk. All levels of government begin to pay attention to government debt problems, because there is a growing risk of government debt. They introduce some documents to strengthen the government debt management and reduce the risk of government debt. Under these circumstances, this article focus on the risk of county government, then the author takes H county as an example to analyze the risk of debt.This paper consists of six chapters, which can be divided into four parts. The first part is the introduction and related theoretical analysis of the local government debt risk. The first chapter is the introduction. The second chapter is the related theoretical analysis. Firstly, the author analyzes the definition, the statistics, and the classification, of government debt, then compares the differences between government debt and traditional government debt. Secondly, the author analyzes the definition of the risk of government debt and every government debt risk. Lastly, the author introduces the assessment methods and management modes. The third chapter is H county’s debt situation and the management system. Then the author analyzes H county’s debt risk and its reasons.There are three reasons. In the fourth chapter, the author analyzes H county’s debt risk through a number of indicators and two comprehensive review methods.The third part is experience. The author introduces New Zealand, Australia, Brazil, France and the United States’government debt management experience. The fourth part is the suggestions and the summary. Our country should create the debt reporting system and disclosure systems, control the size of government debt, create an early-warning system for risk, establish strict payment system and reform other relevant systems. At the end of the article provides a summary.