The Research Of Situation And Legal Resolution For Local Government Financing

With the economic downturn in recent years, the revenue of local governments gradually reduced, while the debt of local government has continued to expand, many local governments have faced with the huge budget deficit, even the risk of government bankruptcy. This serious issue has aroused great attention of macroeconomic department, and the relevant departments have repeatedly issued relevant documents on local government debt and financing. At the same time, some new financing models are also emerging in various government documents. Nowadays, how to choose the appropriate local government financing model, both to meet the reasonable needs of local government financing, and to effectively prevent over-rapid expansion of debt, has become a policy priority consideration. This paper will introduce the historical background and evolution of government financing, analyze the current status of government financing model and the causes of local huge debt, and explore the solution to resolve the issue.This paper is divided into four parts, the first part states the historical background and evolution of local government financing, and discusses the development process of local government financing; the second part summarized current characteristics and the problems of local government financing by analyzing the current status of local government financing; the third part states the main causes of the current situation with the analysis of the second part; the fourth part proposes the corresponding legal solutions on the status of local government financing.