Research On The Government Bebt Risk Assessment Based On The Balance Sheet Of Government

Since the reform and opening up,thesoundness of the market economy system has been improvedsignificantly and the reform of the government accounting system has been implemented gradually.The newly revised "People’s Republic of China budget law" and a series of documents have been introduced,and Balance Sheet ofGovernmentbased on the accrual basis arose.Meanwhile,due to the lack of experience in debt management and risk response,the local government debt risk has been accumulated,and the structure of itis not clear,which broughtpotential threat to the local financial and economic situation.Based on this background,this paper will explore the application of the government balance sheet to the government debt risk assessment.Moreover,the paper will use the case of the A county to assess the debt risk by preparing the balance sheet.The paper consists of six parts.The introduction part mainly introduces the core research questions from the macro backgrounds ofthe reform of government accounting " and "the debt risk of local governments ",that is using the government balance sheet under the government accounting report system to assess the government debt risk,and in this part,the related literatures about the domestic and foreign research of balance sheetwere reviewed in detail.Moreover,this part also introduces the research path and methods.The second part is an overview of the basic theory,on the one hand,the paper will define the core concepts of local government balance sheet,local government debt,local government debt risk and on the other hand,by introducing the theory of debt risk management,the paper will introduce three kinds of commonly used methods of local government debt risk assessment.The "safety","social welfare" and "liquidity" provideimportant theoretical support of the research betweengovernment’s balance sheet and debt risk assessment,which are also widely used in assets recognition and measurement.The third part is the construction of the county government’s balance sheet based on the analysis of the solvency which is the main body of the paper.The paper will summarizethe research results,policies and regulations and practical experience,and based on the three parts mentioned above,the paper will constructthe government balance sheet of the main table and notesfrom the assetpartyand the liability party at last.The fourthpart and fifth part will put all assets and liabilities of A Countyinto the balance sheetat first,and second,the paper will analyze the countygovernment debt risk from the asset liability ratioand the source of funds to repay debtusing the data from 2008 to 2015,at the same time,the paper will summarize the academic literatures of debt management field,and furthermore,the paper will select the commonly used debt risk analysis indexes to quantify the A county’s government debt risk.The sixth part is the conclusion,giving a summary of the whole paper.