A Study On Local Debt Risks In County Or City

In 2013. the global economy has been on a downward trend. Fiscal revenue growth is slower than expected across the country. Under the pressures of replacing business taxes with a value-added tax, the cancellation of partial power of examination and approval, the central government compressing transfer payment and the contradiction local debt into centralized liquidation period while the local expenditure increasing, the contradiction of local finance revenues and expenses have been further highlighted and increase local debt risk. This paper focuses on the contradiction of local debt risk urgent to be resolved by local government. We review a number of related reference materials both domestic and abroad and analyze the root of the debt risk and combine our years of work experience. We put forward the policy suggestions for solving the contradiction of local debt risk.This paper can be divided into five sections,In section 1, we introduce the background of this topic and its importance and summaries corresponding references on this topic.In section 2, we briefly introduce the sample Fuyang City of Zhejiang Province. Based on its actual financial data, we carefully analyze its fiscal balance and verify there exist the local debt risk.In section 3, firstly we analyze the debt situation of Fuyang, then we get the reasons of the contradiction of local debt risk. This paper summarizes the six causes. They are the inconsistent of financial and affair responsibilities by tax assignment system, the seduction by the land finance, the insufficiency of assessment of the situation, the increase in robust spending, the broken finance management pattern and the extensive debt management pattern.In section 4, combining related successful measures to solve the local debt risk at home and abroad and combining with reconfiguring governance and property rights of of central and local governments judging the fiscal revenue situation correctly, building a scientific system of local finances, strengthening the supervision at debt charges., increasing transparency of local government debts, regulations to the local government investment and financing platform and the tighter regulations to local debts, we propose some political suggestions to solve the local debt risk.In section 5, we conclude our paper. In addition, we briefly analyze optimizing standard of expenditure structure, promotion of the government’s experience and the overall measures of solving the local debt risk, which are the motivation and starting point for the author to get further research in the near future.