Research On The Evaluation Of Local Government Debt Risk In China

The global economy is filled with a strong flavor of the debt risk, China’s local government debt risk, the rapid expansion of the scale, the problems have become increasingly prominent, is very harmful to the economic transformation. To this end, China’s August 31, 2014 "budget law" of the people’s Republic of China completed the first major overhaul in 20 years, to prevent illegal call, open and transparent budget, strengthen the budget performance and other aspects of the provisions, which clearly stipulates, the local government to issue bonds, debt scale must have the approval of the State Council shall be submitted to the National People’s Congress or the Standing Committee of National People’s Congress, the protruding the importance and urgency of the evaluation and control of local government debt risk.This article has conducted the research to the local government debt risk assessment system. According to the classification of debt, analysis the risk dimension decomposition layers use level, the establishment of local government debt risk evaluation index system, multi objective decision making through a combination of qualitative and quantitative analysis method, to provide more dimensions of evaluation results for the debt risk assessment, provides a useful tool for the evaluation of comprehensive debt risk. In this paper, the national debt of local government audit reports as the basis, collecting and sorting the debt balances 30 provinces. Through the analysis of the sort of single index of 30 provinces and cities government debt and the comprehensive indexes, put forward the optimization suggestion: the establishment of local government debt rating mechanism, regulate the local government bond issuance; comprehensive and transparent disclosure of local government debt risk early warning system and information; the establishment of supervision mechanism and science.