The Research Of Chinese Local Government Debt Problem

In 1994, China began the full implementation of the Financial System of Tax Distribution system, Zhejiang province after the implementation of the "province to the county" into the financial system, is located in eastern China’s more developed regions in the System of Tax Distribution Wenzhou Ouhai District gradually push forward reform, local government debt issues .The change has come and go, from debt to absorb redundant and more debt to the debt again, forming a cycle of debt. In the early debt digestion, Ouhai District debt to prevent the rebound, and regulate the township fiscal revenue and expenditure, the region in the implementation of the "Township-counties financial management system". At present this new management system is becoming the provinces "comprehensive rural reform" an important work, some provinces and cities have been implemented. Well, the "Township-counties financial management system" in the end what role it can play? As the economy developed areas of the city of Wenzhou, why Ouhai District arise the debt cycle process? What has also happened background and practical significance of this?Based on the evolution of Wenzhou Ouhai District debt the whole process of combining all parts of the country where the current overall debt situation, and the theory of economics, especially the local governments proved to the basic level local government debt is the root of the basic level to identify the legitimate government debt . Pointed out that the expansion of local government debt and curing, and put forward reasonable control measures to basic level local government debt.