Research On Risk Prevention And Control Of Local Government Debt In S District Of Suqian

With the rapid development of the global economy,countries around the world are faced with new challenges on the issue of local government debt.During more than ten years of rapid economic development,local governments in China have established a large amount of government financing platforms to obtain construction funds,which has effectively promoted economic growth and urban-rural integration,but at the same time accumulated large-scale local government debt.With the increasing downward pressure on China's economy and the continuous increase of debt scale,local governments,while facing enormous debt repayment pressure,should also be alert to the possible financial crisis,financial stability and other social problems may caused by the debt risks.With the promulgation of the new budget law in 2014 and the State Council's No.43 document,the supervision layer has become more stringent in monitoring local government debt.However,the phenomenon of local governments' disguised financing through hidden means still exists,and "regulatory growth" of local government debt has emerged.The complexity and severity of local government debt make it very important to study the prevention and control of local debt risks.This paper first studies the basic theory and risk theory of local government debt,then puts forward the scope of local government debt in a broad sense and clarifies the types of its risks.Public choice theory,risk management theory and principal-agent theory are the theoretical basis of this paper.At present,the local government debt risk in S district is generally controllable,but it still faces risks of scale,hidden debt risk and structural risk.The emergence of these risks is closely related to the government's financial system,government function positioning and current financing supervision policies.The government of S district has taken some measures to prevent and control risks,but there are still some problems,such as lagging transformation of financing platforms and large scale of hidden debts.This paper draws on the mature experience of developed countries such as the United States,Poland and Japan,draws on the advantages and disadvantages of Shanghai and zhenjiang in the prevention and control of debt risk,combines the actual situation of S district,and puts forward Suggestions on the prevention and control of local debt risk in S district from the macro and micro levels,It mainly includes:deepening the reform of fiscal and taxation system and promoting the transformation of government functions;establish and improve a modern framework for managing local government debt,standardize the operation of financing platforms and resolve hidden debts,and improve the mechanism for monitoring local government debt risks.It is expected to be helpful to the next step of government debt risk prevention and control in S district.