Research On Local Government Balance Sheets

Finance is the foundation and important pillar of national governance.The report of the 19 th CPC national congress pointed out that the establishment of a modern financial system should be accelerated,and the relationship between the central and local governments should be established with clear powers and responsibilities,balanced financial resources and balanced development.The reform of Fiscal and Taxation system has its special historical background.After the reform of tax distribution system in 1994,the power of the central government was delegated to lower levels and the power of finance was centralized.After the 2008 financial crisis,the Chinese government issued 4 trillion stimulus plan to stimulate its economy,but as a result of basic situation and policy around the suitability of the gap is bigger,lead to some local governments to promote local economic development,meet the needs of matching funds,a large number of explicit and implicit debt,add to the local government debt problem.How to prevent local government debt crisis and maintain local economic vitality has gradually become a worth question to discussion.Internationally,some developed countries use the tool of government balance sheet to analyze their own asset and liability,so as to prevent financial risks and promote the management of government balance sheets.While deepening economic reform,China is also gradually improving the construction of government balance sheet.The trial preparation of government comprehensive financial report issued in 2018 has practical guiding significance for the government to prepare comprehensive financial report.According to the meaning to the research background of the Balance Sheet of Local Government,in turn,lead to the relevant financial theory,such as: Public Financial theory,Fiscal Decentralization theory and Principal-Agent theory.Through defining the concept of government's assets and liabilities,we can conclude the importance of Balance Sheet of Local Government.Combining the international suggestions of the government balance sheet on the British,American and Australian with the research of Cao Yuanzheng,Li Yang,Du Jinfu,basic logic and framework of government balance sheet construction are sorted out.Again through the provincial and local governments under the balance sheet of the preparation of the reference to the experience,such as: Design and Evaluation Index System of the ShanDong Province,the framework of ChiZhou,combining the existing try to build on the basis of preparation of Guizhou provincial government type property debt table throughresearch,found that the existing government budget report item does not match with the statements in the Guide Subjects.It is difficult to achieve statements consolidation.Finally,summed up the future trend of the development of the local government's balance sheet,put forward before the establishment of the balance sheet of the perfection of legal system to strengthen the government balance sheet,the establishment of strengthen the information sharing and management of government departments and the establishment of policy implementation and after fall to the ground to provide a certain number of tracking and feedback.