A Research On Local Government Debt Management Of G City

The background of this thesis is that the central government explicitly forbids local government from borrowing loans directly after the reform of the tax distribution system.However,the lack of financial resources and the enormous pressure of revenue and expenditure force the local government to borrow money from financing platforms or enterprises.At present stage,the gap between financial revenue and expenditure of local government is widening.Meanwhile,the scale of debt is increasing and the debt risk is accumulating.Therefore,it is particularly necessary to study local government debt.The significance of this thesis is to take the actual situation of the local government debt in G city as the starting point.It focuses on the use of research for the risk analysis and risk control of local government debt management in G city.Especially in recent years,G city has entered the period of relatively vicious circle of debt.And due to the undeveloped economy,local public budget revenue and superior transfer payment income are completely insufficient to meet the needs of local economic development.The government borrows money heavily,thus producing high local debt.The snowball of debt is getting bigger and bigger,which has seriously affected the operation quality of G city's overall economy.This thesis analyzes its existing potential risks from many aspects in depth,such as the emergence and evolution of local government debt,debt risk assessment and debt replacement and so on.At the same time,it uses international experience and measures for reference to solve the problem of local debt and explores the positive means to deal with the severe local government debt at present.Through the actual situation in the process of issuing and managing local government debt in G city at the present stage,this thesis starts with the basic situation of debt scale,debt structure and debt replacement.It makes a deep analysis of the problem which appears in the process of debt management,such as the lack of effective supervision of debt funds,the weak debt-paying ability of local government,the disguised debt induced by existing debt issuance modes,and the difficulty of controlling loan risks.It also explains a series of scale risks,structural risks,early warning mechanism risks,efficiency risks and financial risks that may arise from local government debt in G city.At last,the thesis puts forward countermeasures and suggestions of local government debt management from a variety of perspectives,which combines the local actual situation with international experience of countries,such as the United States,Japan,Australia,Poland and Sweden.The innovation of this thesis lies in the following aspects.Firstly,it introduces the relevant theories of local government debt,such as public goods theory,fiscal decentralization theory,market failure and government failure theory,debt and risk control theory to define the concept clearly.Secondly,it analyzes the specific situation and debt risk of the local government debt in G city on the basis of KMV model analysis and statistical data.Thirdly,in order to put forward relevant countermeasures and suggestions to solve the potential risks of local government debt in G city,it absorbs the advanced experience of foreign countries,such as the United States,Japan,Australia,Poland,Sweden and so on.The shortcomings of this thesis are as follows.First,some data on local government debt are now in a gray area,and most local governments are silent on the debt problem.Therefore,the local government debt of G city cannot be analyzed more profoundly and concretely.Second,although the author has carried on multi-angle analysis about the local government debt in G city,the research on the debt is not mature enough and the demonstration is also not profound enough.Third,among the proposed suggestion,the actual operation is more difficult and it needs a long time for implementation.And the short-term suggestions cannot be implemented.More suggestions need to be further optimized and improved in the future study and work.