Research On The Legal System Of Local Government Debt Supervision In China

The issuance of local government bonds through debt financing is an important means for local governments to meet their spending needs and ease financial pressures.The year-on-year growth of the debt volume and the implicit debts that are illegally borrowed have brought greater risks to the stability of China's economic and financial systems.The law has no complete method,and it is necessary to continually amend the law through methods such as establishing,reforming,and abolishing,so as to reduce the degree of imperfection of the law.The existence of the problem of local government debt risk shows that there are still some improvements in the laws of local government debt.This paper analyzes the legal subjects,legal acts and legal responsibilities of local government debt supervision through normative analysis,comparative analysis and historical analysis.At the same level,it puts forward the opinions and suggestions on perfecting the legal system of local government debt supervision in China.Generally speaking,the debt scale of local governments in China is still under control;however,some provinces,especially those in the western underdeveloped regions,have a dominant debt debt ratio that exceeds the EU's 60% warning line,and the implicit debt debt ratio is even more It broke through the 100% warning line of the EU.The large-scale borrowing of local governments is closely related to China's political and economic systems,fiscal decentralization systems,and macro-control measures.After the implementation of the new "Budget Law",with the joint efforts of the State Council,the Ministry of Finance and the Banking Regulatory Commission,the local government has basically established a legal system for the supervision of bonds issued by the local government,from the main body and method of debt issuance,debt size and repayment responsibility,and risk prediction.Dimensions such as resolving and regulating the financing behavior of local governments.Although the regulatory framework has been established,the current legal regulatory framework has not achieved good results due to the low level of legislation,unclear responsibility for assistance,imperfect debt issuance mechanism,and the fundamental problem of local government fiscal revenue and expenditure unequal.The practical effect.To completely solve the problems in the field of local government debt management,we must start from the institutional level.A good system can resolve the risks invisible.This paper attempts to start from the common framework of public and private law of“subject-behavior-responsibility” and proposes to improve the legal system of local government debt supervision from three dimensions.The main body of supervision is the most important department in the regulatory framework.The act of creating new laws within the scope permitted by law can solve the problem of incomplete legislation to a large extent.To solve the problem of local government debt,we must first solve the problem of unequal fiscal revenue and expenditure faced by local governments.Therefore,this paper proposes to expand the taxation of local governments by enacting legal documents such as the Basic Tax Law and the Law on the Division of Financial Revenue and Expenditure.The legislative power gives local governments the right to divide tax revenues in order to expand the local government's fiscal revenue and reduce the local government's debt demand.Marketization is the ultimate development goal of China's local government bonds.At present,the pilot work of public fundraising has greatly enhanced the market-oriented government.Although local government bonds are issued by political entities,the characteristics of marketization determine that they should be supervised by one or two associations,just like other bonds on the market.At present,the two parties will mainly supervise financial institutions that accept local government credit guarantees or provide local governments with illegal financing.After the degree of marketization of local government bonds has gradually increased,the two parties should also supervise the issue of local government bonds.In addition,industry associations should also play the role of their self-regulatory organizations.Regulatory behavior is an important structure of the regulatory framework.A regulatory framework can achieve the effect of regulating illegal behaviors.It depends on the effectiveness of regulatory actions.To solve the problems in the local government debt management,in the future system improvement work,we should work hard to establish a local government bankruptcy system and a local government debt risk early warning mechanism,and we can learn from countries with mature local debt management systems such as the United States.Improve the supervision system of local government debt in China according to local conditions.Clear regulatory responsibilities can help curb themoral hazard of the regulated entity.Although the State Council emphasizes the "non-rescue principle" that the central government adheres to when local government debt relief,China's political system determines that the central government cannot implement the principle of complete non-rescue;and the central government's unlimited guarantee will strengthen the local government.Irrational behavior exacerbates risk.It is very important to clarify the debt responsibilities of the central government and local governments.This paper draws on the path of crisis scholars' revision of the central bank's "final lender" system,and believes that it is necessary to strengthen the central government's guarantee responsibility for local governments,and to let local governments pay for help.The cost,but also strict local government debt service responsibilities,so that local governments can issue bonds according to the actual situation of the province,to avoid the predicament of excessive government debt.