Research On The Risk Prevention And Control Of Local Government Debt In China

In 2008,the central government launched the "4 trillion" economic stimulus plan.Since the local fiscal authority was not matched after the 1994 tax sharing reform,and the original"Budget Law" issued in the same year prohibited local governments from issuing bonds,local governments began to use various methods.Borrowing debt has accumulated a large amount of local government debt.After the implementation of the 43rd Document in 2014 and the new "Budget Law",in 2015,it was difficult for local governments to meet their financing needs through borrowing within limits,and illegally borrowed government debt in ways other than government bonds.This created a "moral hazard" for local governments,resulting in"Budget soft constraints"have created a large hidden debt risk.Regarding the issue above,we should focus on the prevention and control of local debt risks under the new "Budget Law",especially the hidden debt risks.According to the Ministry of Finance's public disclosure,as of the end of November 2017,the balance of local government debt in the country totaled 16.47 trillion yuan respectively,with control within the limits approved by the NPC.The analysis found that the local provinces and municipalities debt ratio is high,the debt of the financing platform is very risky,the recessive debt risk of local government is aggravated,even threatening the financial security.Since 2017,the Central Government has repeatedly slandered local governments,regulated the borrowing and financing activities of local governments,cracked down on illegal and irregular financing,and continued to hold high levels of accountability.2017 National Financial Work Conference,the Political Bureau of the CPC Central Committee,the State Council executive meeting and the 2018 National Economic Work Conference?First meeting of the Central Financial Commission and other important occasions,we must take the initiative to prevent systematic financial risks and lay a good fight against financial risks.Based on the latest research results and risk prevention and control policies at home and abroad,this paper,starting from the theory of government debt management,combined with the new "Budget Law" to local government debt management According to the local financial practice,this paper puts forward the suggestion of perfecting the local government debt management by analyzing the reason of the local government debt risk,and learn from the advanced management experience and crisis response measures of other countries in the world,puts forward the reasonable and effective route to deal with the local government debt risk(especially the hidden debt risk).Under the premise of not being rescued by the central government,the Bank aims at actively and steadily resolving the accumulated debt risks of local governments,effectively regulating the borrowing and financing of local governments,avoiding regional and systemic financial and financial risks,laying the foundations for prevention and mitigation of major risks and promoting the fiscal The healthy development of financial business and stable operation of economy and society.