Local Government Debt Governance Issues Research,on The Condition Of Fiscal Decentralization

Since the reform and opening up,China's financial system reform has been exploring,From a fiscal responsibility system,to allocation and transfer payment reform,The fiscal decentralization has always been the core of the financial system reform.As the uneven division of the tax reform in 1994 financial powers and responsibilities,The local government debt of our country has came out,The government focus only on what GDP achieves,this concept also contributed to the problem.The advancement of urbanization,the country's 4 trillion economic stimulus plan for the financial crisis in 2008,the central government release the hundreds of billions of local government debt in next two years,These factors make China's local government debt scale large,and it also produces many problems.Based on the perspective of fiscal decentralization,this paper analyzes the present situation and problems of the local government debts,analyzes its reasons,and describes the successful experience of the developed countries especially the United States and Japan,finally puts forward policy Suggestions.This paper hope to provide some guidance for local debt debt governance problems in China.This paper is divided into six parts.The first part is introduction,including the background of the selected topic,theoretical significance and practical significance,literature review,thesis research ideas and methods,innovations and shortcomings.The second part discusses the basic theory of fiscal decentralization including the principle and the history of China's fiscal decentralization,local government debt theory including the classification and the evolution of the local government debt in our country.The third part analyzes the present situation and problems of the local government debt,including the growing size and returns on investment,and dependence on land finance,the short-term liquidity risk which has a lot of influence,the problem of the debt platform and subjects,the interests dispute between the central and local government.The fourth part analyzes the reasons of local government's debt scale,the disadvantages of fiscal decentralization has four aspects,including the governance and expenditures,the local tax system,the government level and the transfer payment,imperfect systems and mechanisms has three aspects,including the pattern of economic development,the official performance evaluation and the legal,regulatory mechanism.The fifth part introduces the experience of the United States and Japan,including the issue and repay,the returns and risk,and supervision,it is concluded that China's local government should perfect the system of responsibility,and strengthen the regulations step by step.The sixth part gives the policy suggestions,short-term measures include asset securitization,private capital and financial innovation,improve the system of the separation of powers,we will deepen reform of the fiscal and tax system,perfect the issue system of the local government debt,strengthen the supervision and risk control from the viewpoints of administration,law,market.