Research On Excessive Government Debt Problems Of Township

Township debt crisis is a prominent political and economic problem facing townships in China,with its nature lying in deficit spending.In recent years,the country's township government debt has displayed a rapid increase.In an audit report on the national government debt issued by the National Audit Office in December 2013,it is obviously shown that townshiplevel government,as the country's most basic government,is faced with quite severe debt problems due to large amount of debts,rapid increase of debts and huge repayment pressure,some even resulting in false economic heat,waste of resources,environmental damage,unpaid wages,rent-seeking and corruptions.If township government debt problems cannot be properly solved,it will trigger the township government debt crisis,affecting the stability and development of government at grass-roots level,and ultimately affecting the country's long-term peace and stability.Therefore,the exploration and management of government debts are of theoretical and practical significance in perfecting the market mechanism,preventing market failure,guarding against government failure and promoting social justice and stability.Report of the 19 th National Congress of the CPC regards prevention and control of financial risks as the first of the three risk battles.Prevention and control of financial risks has risen to the national level,and debt problems of local governments are also mentioned in the report.With more and more strict controls,it has become an important research topic to define scientifically and reasonably the township debt scale and debt risk,and to better resolve township debts.Taking X Town Zhejiang Province as an example,the author applies the theory of public goods,classification theory of township government debts and the theory of reasonable scale of township debt,explores historical evolution of debt and excessive debt problem of X Town from 1978 to 2016,analyzes its causes including subsidies to villages,infrastructure construction,personnel expenses and fiscal revenue and expenditure,and finally puts forward countermeasures and suggestions in terms of strengthening the collective economy at the village level,optimizing engineering construction,improving non-staff management and expanding the township government's disposable financial resources.