Research On Local Government Debt Risk Prevention And Control

1994 "tax reform led to the central and local government property rights and powers do not match,is the system root of local government borrowing debt.In 2008,in response to the financial crisis,the central government introduced a 4 trillion economic stimulus package.The local government has undertaken most of the money,which undoubtedly brings huge borrowing power for local governments.During this period,the local government financing platform for the surge in the number of platform debt scale expands sharply,as of the end of June 2013,the debt financing platform amounted to approximately6 trillion and 970 billion yuan.In addition,as China’s economy continued to improve,public construction has been continuously improved,the process of urban construction steadily accelerating social security,medical care,security system is perfect,the local government also rapid growth in demand for capital construction security,local government debt increased,thereby increasing the risk of local government debt.As of July 28 th,the balance of local government debt reached 15 trillion and 860 billion.Strengthening the prevention and control of local government debt risk and timely resolving the debt risk are the guarantee of sustained,healthy and steady development of the national economy and society.At this stage,the downward pressure on the economy continues to increase,the prevention and control of local government debt risk is imminent.In recent years,the state issued a series of policy measures,risk prevention and control of local government debt has entered a new stage,but it is a process of continuous improvement,China’s local government debt is still facing local government borrowing is limited,imperfect management system,property rights and powers do not match such problems.This paper first analyzes the potential risk to China’s local debt may bring,such as local government debt might kidnap fiscal and monetary policies,greatly improve the business of commercial banks non-performing rate,triggering a financial crisis,the government credibility decline,triggered a crisis of confidence.Then from the local government debt management system is not perfect,the central and local government property rights and powers do not match,the performance evaluation system of local government borrowing restrictions,such as unreasonable aspects of the causes of the risk or are briefly analyzed.The fourth chapter,taking Z city as an example,introduces the current situation of county government’s risk and risk prevention and control in china.Then on the basis of our national conditions,learn from the advanced experience of the United States,Japan,Australia and other countries,put forward their own views and opinions on risk prevention and control of local government debt in China: 1.from the improvement of local government debt budget system and risk warning mechanism,information disclosure system,debt repayment and resolve the four aspects of constructing and perfecting the the local government debt management system;2.to improve the tax system,the property tax,resource tax and other local taxes,increase the fiscal revenue;3.to further improve the local government performance evaluation mechanism,tries to construct a set of local government debt risk control level,the local government performance evaluation system;4.from the two aspects of local government bonds and PPP to improve the local government investment and financing system.I hope this study can provide some help in the management of local government debt,the risk of local government debt,effective prevention and control,and so on.