Study On The Legal Regulation Of Local Debt Under Budget Control

Moderate debt can provide funds for public services and social and economic development.But,if lacked the effective restrictions of the budget control and unrestrained borrowing,it is not only affect the credibility of local governments,or even bring local or systemic financial crisis.In 2014,the new budget law gives provincial governments limited rights to issue debt,and initial results have also been achieved in the management and standardization of local debts through budget management.However,although there is a budget law in China,the explicit and implicit debt problems are huge,and there are still a number of legal issues in local government borrowing that run counter to budgetary controls.The main legal problems are as follows: the local people's congresses have not fully exercised the power of budget review and supervision;the local governments violated the principle of "living within their means" to borrow heavily in violation of regulations;the budgetary controls of local government borrowing are inadequate;and local governments are free to borrow against the law and so on.And the main legal reasons for the above problems are as follows: the regulations of debt supervision and administration of leverage for the local people's congresses are not complete;the debt issuance benchmark based on solvency has not yet been stipulated in law;the budget control mechanism for controlling local government debt has become severely depleted;and the supervision and accountability of illegal debt is not strict.In our country,there has not formed the system about the local debt budget management system at present.In order to make the local debt better meet the requirements of budget control and prevent local governments from borrowing illegally,the author analyzes the legislative purpose contained in the budget control regulation of local debt and the basic requirements that local debt should comply with,and draws on the lessons of the legislation and governance experience about budget management that use budget control mechanism to regulate debt and supervise and punish excessive debt of local governments outside China from the perspective of budget control.Combine our country actual situation,the author suggests that we should fully implement the legal rights of local people's congresses' budgetary examination and supervision power,and adopt legislation to set solvency as the benchmark for debt issuance.And we should strengthen the debt budget control mechanism of the budget law,and support the improvement of the debt budget supervision and accountability legal mechanism in the local debt governance and specification in the future.On this basis,the author think that we will make better use of the budgetary control mechanism to govern and regulate local government debt,and promote economic and social development.