The Research On Government Accounting Reform To Prevent And Control Local Government Debt Risk

The outbreak of the European debt crisis has led the world to realize the importance and necessity of government accounting reform.In 2008,in order to deal with the international financial crisis,the central government of China launched "four trillion"investment plan to boost domestic demand,and China local governments also set up lots of financing platform companies to develop the public welfare projects,local government debt risk spreading all over China.The accumulation of government debt risk provides impetus for advancing government accounting reform.The cash basis government accounting system can neither provide information about local government debt comprehensively and accurately,nor play the function of supervision effectively at the present stage.Therefore,we cannot forecast,prevent and control local government debt risk timely.It's the proper time for government accounting reform be launched in China.Based on the principal-agent theory,stakeholder theory and public fiduciary duty theory,and from the angle of reducing information asymmetry to constrain the behavior of local government lending debt,this article tried to explore the importance of obtaining government debt data and relevant project information accurately and timely,proving that it is necessary to promote the reform of government accounting theoretically.According to the data of local government debt from National Audit Announcement of China,and the status of Ningbo municipal government debt at the corresponding level,this paper also concluded that local government debt of China has characteristics of large scale,rapid growth,complex constitution and significant risk through the data comparative analysis.Meanwhile,from the prospective of Ningbo municipal government debt risk and management situation,this text examined the problems of current government budget accounting,which is difficult to adapt to the needs of government debt management,lack of effective government debt information disclosure platform,strict internal and external supervision as well as sound supporting mechanism.By analyzing the government accounting development course of our country,this paper summarized problems of this stage.Combining with advanced experience of government accounting reform from foreign developed countries,like United States,New Zealand,France,the article suggest to promote government accounting reform with Chinese characteristics,through the introduction of the accrual accounting basis step by step,improving the government accounting information reporting system,setting up accounting laws and regulations and establishing the support systems and mechanisms which include strengthen audit supervision,improving the accounting information system,intensifying the training of government accountant,selecting high-quality talents,optimizing the internal control of government as well.We will vigorously promote the construction of information governments to strengthen local government debt management,preventing and controlling local government debt risks effectively.