Problems Of Local Government Debt Management And Solving Strategy

Under the guidance of relevant theory of fiscal decentralization,some local government began to float a loan,the behavior led to the local financial crisis.In 1994,under the influence of the decentralization theory,fiscal policy gradually introduce the system in our country,after reforming,local governments in China showed a certain financial problems on different levels,especially after the financial crisis in 2008,in order to maintain rapid economic growth,promote the related active fiscal policy and merge with the central funds and cohesion,the local government began to float a loan to fill gaps in income expenditure.The article reviews the current literature on the study of the local government debt,involves the reasons for the formation of local government debt for risk as well as the influence factors.Fiscal decentralization,institutional change,incentives and public product theory to a certain extent,the reasons of local government financial crisis as well as the risks and resolve ways were explained,in this paper,the local financial as well as a detailed study of the domestic relevant situation of the government and,in the eighteenth build well-off society goal,promote the construction of urban environment need to keep the sustainability of the investment,the investment demand in the short term,the need for loaning,which led to a large scale in the short term government swelling,due to China's special cultural environment of political economy at the same time.Lead to local governments,unlike other countries there is big,this paper analyzes the causes of the debt problems of local government and local government debt to influence caused by the economic and social aspects.In this paper,we emphatically put forward the debt risk of local places in China,the city of a few firms in the status of the insolvency fund.Local government debts in the world are introduced in this paper can draw lessons from the country,in terms of governance,and to prevent such as the United States,Japan,Germany,etc.These countries in dealing with their us to manage constraints,requirements of local government in the bond issue,need to consider the repayment ability,it can't blame on the central government,local government bond issuance in the United States is fully market-oriented,on debt issuance in the process of cost and scale is often determined by the market.The United States has set up special debt management committee of local government debt management.Jointly issued debt,such as Germany and Japan's local government debt management practice,can offer certain enlightenment and reference to China's local governments.On the basis of the study,we give the solutions to the specific condition of local government debt in China is put forward,it can prevent measures and relevant resolving methods.In the process of governance,according to the nature and causes of the difference between local government debt themselves,adopt different ways and means.To effectively resolve the current local government debt in our country,first you need to do,is to grasp the actual stock of local government debt is the rigidity of related data,and large touch bottom action,there is enough for local government debt situation to control ability,relevant data requires local governments to be updated,relevant network platform,new debt of local governments can be informed,for the physical aspects,because of fiscal decentralization makes debt form,so you need to make a series of reforms on fiscal system and fiscal changes do level,level of government.Achieve the segmentation of finance rights and,in addition,also ought to issue local government bonds,transparent and marketization are diversified with the current local government debt for borrowing the differences.This is advantageous for local government to control the debt scale.Development in economy is relatively backward area,there are often difficult problems,in order to solve this problem,jointly issued debt settlement is put forward.For there is a big impact on China's local government debt of cadre assessment mechanism,all need to be perfected and improved unceasingly,in the new evaluation mechanism,implement process,financial factors such as the need to join.Overall,the financial situation of local government form,mainly is the fiscal decentralization,impact of the macroeconomic environment and the assessment of cadres,and the budget constraint is the main cause of China's local government debt formation;The fundamental way to solve China's local government debt is to issue local government bonds;Jointly issued debt,is to solve some backward area province issued by the solution of debt credit degree is not high,the financial data is updated in a timely manner to understand and control,the key to financial problems.