Research On Legal System Of Governing Local Government Debt Risk

For a long time,China's financial management system,performance appraisal mechanism and government debt supervision system have led to the imbalance of the allocation of financial power and power of local governments,which has led to the excessive use of creditor's rights by local governments.This is the reason for the rapid growth of the scale of local government debt and its rising risk.The National Audit Office conducted two comprehensive audits of government debt in 2011 and 2013.Based on the statistical results,the State Council issued the Opinions on Strengthening Local Government Debt Management,and the Ministry of Finance formulated the Measures for Clearing up and Screening Local Government Stock Debt into Budget Management.Since then,the State has issued various policies and measures on local government debt management to deal with local debt risk.According to the Budget Law revised in 2014,local governments have the right to borrow moderately,and bond issuance has become the only legal means of local government financing.Therefore,for the stock debt,the issuance of local government bonds is used to replace it,while for the new debt,the main way is to control the issuance of new local government bonds.However,there are still some deficiencies in the management of local government debts in the Budget Law.How to scientifically divide financial and administrative powers between central and local governments,how to distribute bond quotas between provincial governments and lower governments,and how to solve a large number of debts accumulated over the years,and other problems related to the governance of local government debt risks,which need other laws.Coordination of laws and regulations.This paper aims at the standardized treatment of local government stock debt and new debt,and at the same time perfects the relevant regulatory system to prevent and control debt risk.It discusses the current situation and risk sources of local government debt from the following three aspects,and puts forward corresponding countermeasures from the perspective of legalization:Firstly,it summarizes the concept of local government debt,including the meaning and classification of local government debt.Then through data analysis of local government debt in China,it points out that the overall risk of local government debt in China is controllable,but the local risk can not be ignored,and combs the system and policy of regulating local government debt risk in China,and points out the shortcomings.Secondly,it analyses the difficulties in the governance of local government debt risk.Secondly,it discusses the impact of the expansion of risk on the construction of legal system.Especially in the actual process of debt treatment,some measures violate the relevant provisions of Budget Law,Guarantee Law and Bankruptcy Law.On this basis,from the overall perspective.Setting out to put forward the solution of the rule of law.Finally,it lists the measures to prevent and control debt risk and the improvement of relevant laws.As for the stock debt,we should classify it scientifically and deal with it according to the category,and put forward to build a repayment mechanism with the repayment fund as the core.For the follow-up incremental debt,it is proposed to develop the local government debt market by enacting the Public Debt Law to increase the debt scale reasonably.In the aspect of urban development and construction,it is suggested that the rule of law should promote the cooperation between government and social capital,and that a market-oriented risk-sharing mechanism should be established on the basis of a reasonable definition of market and government boundaries.In the process of dealing with local debts,it is essential to improve the legal system of risk prevention and control of local governments.From the perspective of legalization,this paper puts forward targeted regulatory suggestions,mainly to strictly implement the budget law and strictly rectify the disorderly phenomenon of borrowing.Including improving the operability of the NPC supervision system,establishing an independent debt budget system,improving the government debt management mechanism,such as strengthening the information disclosure and accountability system of local government bonds,improving the evaluation system,strengthening the supervision of local government financing behavior,and building a link between the market and the government.At the same time,we should guard against the hidden debt risk of local governments.