Research On The Financial Degree Of Debt Risk Of Provincial Government In China

In the process of dealing with the problem of financial crisis since 2009,the size of the debt of Chinese local government has expanded rapidly,including almost all cities and towns.The American subprime mortgage crisis and the European debt crisis show us that once the debt of the local government in trouble,it is possible to cause the national debt crisis and financial turmoil,and affect the healthy,stable and sustainable development of the national economy.In 2011 and 2013,the Audit Commission has launched twice national audit of local government debt,then the NPC has amended the Budget law allowing local governments to raise debt in 2014,and the State Council has published "management of the local government debt "in 2014 to standardize the management of local government debt,the MOF is pushing emerging financing way such as PPP and implementation,which opening the curtain to deal with local government debt risk.Local governments should be moderate in borrowing,which can help government to raise funds from different sources and promote the development of China's local economy and society.But with the rise of local investment boom in recent years,the scale of local government debt expand rapidly,local debt risk highlights,social concerns about the local debt crisis will also become the focus.In this paper,the study found that China's provincial government is no longer only through the traditional bank lending channels to finance,but through a new way of financing to raise funds,and the provincial local governments through Government financing platform?BT?Trust and other disguised financing phenomenon highlights.Based on the local government debt balance,local government debt burden rate and other indicators of China's provincial local government debt risk assessment,we found that local government debt presents the characteristics of the financial.Provincial local government debt risk securitization causes local government debt risk and financial risk more closely related,infect each other.By analyzing the data and using the statistical map,we can directly find that some provinces and cities' government debt burden rate are high such as Hainan,Yunnan and Guizhou;some provinces and cities' government debt risks in financial degree are high,such as Shandong,Liaoning,Tianjin,Shanghai and Beijing.In this paper,we deeply analyze the deep-seated causes of the local debt and the deep-seated reasons of the debt risk financing,and then give some policy recommendations to resolve the local government debt risk.We can establish scientific management to strengthen China's provincial local government debt risk early warning and system construction?moderate debt to control the scale of local government debt?pay our debts in time to prevent local government debt crisis and to reduce local government debt risk through innovative products.