Japan Local Government Bonds Repayment Legal System And Its Reference For China

As the Budget Law of the People’s Republic of China entering into force in 2015,our local government could issue local government bonds legally.But being in an early stage of development of our local government bonds,the relevant legal system has not been established.We are concerned about whether our local government could repay their government bonds.Comparing with our country,Japan has been developing local government bonds for a long time,and its government bonds legal system is relatively complete.Although the local government bonds in Japan also have their problems,but after the market-oriented reform Japan rebuilds its local government bonds system,which makes their local government bonds changing in a good trend.Therefore,the purpose of this paper is,by a comparison of the development process and repayment legal system of local government in China and Japan,to learn the experience of reform and development from Japan,and finally provide some suggestions for our country to establish local government bonds repayment legal system.The highlight of the thesis is that after searching and translating the Japan local government bonds repayment regulations and comparing it with the relevant rules in China,it found the difference and put forward some advice for our country.The thesis is innovative because it is problem-oriented,and contrasts local government bonds repayment between China and Japan from the legal perspective.With the analysis of their similarities and differences,the thesis points out the short comings of the local government bonds repayment legal system of China and Japan,draws lessons from the sinking fund management of Japan,and provides suggestions to improve the legal system of local government bonds of ChinaThe first part of the article presents some related concepts,main features and basic theories of local government bonds and introduces the relevant contents of the local public debt repayment system for the purpose of paving the way for the local government bonds repayment legal systemThe second part summarizes the current situation and operating mechanism of the local public debt in Japan,which shows the composition of the local public debt management institution,the present situation of the local debt and the operation mechanism of the local debt issuance and repayment in Japan.The third part elaborates Japan local government bonds repayment regulations including repayment liability subject,repayment modes,source of repayment funds and Sinking Fund system.After that this part analyzes the deficiencies and good experience of Japan local debt regulations.The fourth part introduces the three development stages of local government bonds after the founding of China and shows the pressure of local governments faces in debt repayment.Based on this background,paper presents China local government bonds repayment rules and discusses main problems of repayment rules of China.In the fifth part,with analyzing the differences of local government bonds repayment regulations of the two countries,the article provides a proposal that local governments should establish a legal system to manage government bonds and especially set up Sinking Fund as the core of the repayment legal system On one hand,local governments should construct specialized management agencies to improve efficiency of the funds use;on the other hand,the central government should reform transfer payment system to expand the source of the Sinking Fund.In addition,legal system regulations should strengthen supervision and refine the accountability of local government bonds repayment.The conclusion part generalizes the deficiency and the successful experiences of Japan local government bonds repayment regulations which China can learn from Finally the thesis suggests that our local government need to speed up the exploration practice,establish the system to regulate the local public debt repayment,and hope that local governments could make the best use of government bonds and promote economic and social development.