The Research Of Local Government Debt Management In Panzhihua City

With the rapid development of the economy and society in China and fierce competition among regions, debt risk is accompanied by accumulation and amplification with the expanding scale of local government debt. Local governments in China are not allowed to go bankrupt, but audit reports for many years show that some local government debt has exceeded the carrying capacity of the local government, and the risks can not be ignored. The major issues for local government is how to regulate the management of local government debt, give full play to the efficiency in the usage of funds, and avoid debt risks. In 2014, the new budget law for the first time make clear about the local government debt legalization on the law, which puts forward many ideas for strengthening local government debt management and funds to deal with the government debt risk.This paper regards debt management in the local government in Panzhihua City as the research object to solve the debt risk of Panzhihua government and strengthen management of government debt for the purpose, in accordance with the theory of "combing theory, figuring present situation, learning international experience, and putting forward proposals,". On the basis of combing the domestic and foreign research status about the local government's debt management, expounding the relevant concept and connotation of local government debt, cause and risk indicators and laying a solid theoretical foundation, we should learn theoretical achievements of experts and scholars at home and abroad. Investigation on the Panzhihua government debt situation is to obtain the firsthand data, which fully reflects the local government debt scale, structure, source of funds, and the calculation of the rate of debt, debt ratio and debt service ratio, loan through four main new and old rate debt indicators to measure the debt risk of Panzhihua city, and the conclusion shows that Panzhihua government debt situation is not optimistic. Much attention should be put on debt risk. The existed problems on the management of debt in Panzhihua city need to be deeply analyzed. This paper analyzes the causes of the rapid expansion of the Panzhihua government debt from the financial system and the government's own management. On the basis of systematically describing and analyzing the local government debt financing mode and risk management of America, Brazil and Japan, we learn from other country's experience method,which gives specific recommendations for the Panzhihua City government debt risk, and strengthens the Panzhihua government debt management in six feasible ways:make the annual report on government debt in public; establish the local government debt management committee; vigorously develop the economy, nurture local resources; resolve the stock and structure of debt; deepen the reform of the financial system, improve the overall fiscal balance capacity; strengthen the supervision of the National People's Congress at the same level.The study finds out that the Chinese government has made an adjustment on calculation caliber of comprehensive finance since 2014, but the specific caliber is not yet clear. Comprehensive financial calculation is an important indicator of local government debt ratio and debt service ratio, therefore, uncertainty on specific caliber shows that the central government seriously considers debt indicators of the local government and has uncertain attitude, which is not good for management and risk control of local government debt. Combined with the theoretical analysis and the practical of management, the paper uses methods of literature survey, empirical analysis and synthesis method to put forward some ideas to resolve the Panzhihua municipal government debt risk, which is in line with the spirit of the new budget law with strong operability. The suggestions on the Panzhihua government debt management are suitable for the real conditions there, which have a strong practical significance, and also have a reference significance of debt management for other prefecture city. Due to the fact that local government debt management involves a range of areas and research abilities, so the time is limited. There solutions of the local government debt risks in Panzhihua City in this paper are not systematic and comprehensive enough and the in-depth study is needed in the future.