Formation And Governance Mechanism Of Local Government Debt

Local government debt is a hot focus that is of great concern to current researchers and practitioners.In order to grasp the overall situation of local government debts,in 2013,the National Audit Office audited local government debts.The scale of local government debt were known by public.However,the government's hidden debts are as free from the budget as the icebergs immersed in the water.The scale is huge and the risks are unknown.Firstly,this article shows the historical overview of the national local government debt,and based on Hannah's fiscal risk matrix,clarifies the local gover nment debts caliber.On this basis,the full scale of Zhejiang government debt is measured from the perspective of iceberg theory.Simultaneously,the main characteristics are summarized by comparative research method,thus revealing the risks associated with Zhejiang government debt.Secondly,in order to explore the reasons for the formation of local gover nment debt,this paper analyzes the Zhejiang government debt developed by the financing platform companies and Public-Private-Partnership projects from the perspective of debt formation development.At the same time,combined with the budget soft constraint and developmental government theory in public mana gement theory,with the administrative management system,the fiscal system,the investment and financing system,and the policy factors analyzed respectively,the root causes of the government debt in Zhejiang were analyzed in depth.In order to effectively improve the level of local government debt governance,this paper combines part experience of advanced debt management in Zhejiang,and divides the countermeasures into micro-level and macro-level according to the formation reasons.The micro-level means the measures that should be guaranteed at the current stage,and the macro level means the countermeasures which are starting from the top design,gradually improved in the medium and long term.It is hoped that in the process of local government debt governance,Zhejiang will simultaneously adopt micro and macro measures to promote the sustainable and high-quality development of Zhejiang's economy.