Research On The Prevention Of Local Government Debt Risk

The report of the Nineteenth National Congress proposed that we should resolutely take precautions against and resolve major risks,focusing on financial risks and local government liability risks.The central government issued a series of documents to regulate the management of local government liability.From the existing data,we can see that the whole local government liability risk is controllable,but the regional differences are very different;the phenomenon of disguised liability is frequent,and the scale of local government implicit debt is large.From the analysis of the source of debt-servicing funds and debt-servicing capacity,the local government relies on land transfer income,and its sustainability is not high;the fiscal self-sufficiency rate is decreasing year by year,and the ratio of debt-serviceable income to debt maturity is low.In the context of the increasingly mismatching of local government financial resources and powers,the increasing demand for local government liability financing leads to the increasing scale of local government liability and the accumulation of debt risks.Especially in recent years,with the increasing attention of the society to the local government liability,the backwardness of debt management has also been pushed to the upsurge.A series of problems,such as the lack of transparency of debt information,soft budget constraints,lack of early warning mechanism for debt risk,weak debt supervision and accountability mechanism,have become obstacles to preventing local government liability risk.Therefore,we should regulate the management and restraint of local government liability,improve the relevant system of debt management,and guide local government sunshine financing under the framework of the system.By learning from the experience of foreign local governments in debt prevention,this paper suggests that China speed up the reform of fiscal decentralization system and improve the transfer payment system while reasonably dividing the powers and expenditure responsibilities.Constructing a capital budget,forming a double budget system,strengthening the hard role of budget constraints,and improving the degree of disclosure of local government liability information.Establish and improve the early warning mechanism of debt risk and improve the government credit evaluation system.Strengthen the local government liability supervision and restraint mechanism,and cultivate a new performance concept under the effective debt accountability mechanism.We will continue to promote the transformation and development of local financing platforms,encourage financing innovation and realize the marketization of local government bonds.Through the above ways,controlling the scale of local government liability,preventing and resolving debt risks,promoting the rational use of debt financing,and promoting the economic development of local governments are of great significance to the current and future development of local government liability in China.