Research On Local Government Debt Problems In ZJ City

The reform of the central tax sharing system in 1994 led to an imbalance in the division of financial power and power,and the local government debt problem followed.Especially since the international financial crisis in 2008,in order to alleviate the downward pressure on the domestic economy,local governments have set up local government financing vehicles,and the debt has been used to stimulate the economy,and the scale of local debt has expanded rapidly.After the new budget law of 2015,the issuance of local government bonds has become the only legal way for local government financing in China.However,with the acceleration of China's urbanization,rooted in institutional problems and the lack of standardized supervision,local governments have repeatedly banned disguised financing through non-standard PPP or government purchase of services,forming a huge “hidden debt pool”.At present,China's economic transformation,reform and development have entered the deep-water area.The problem of local government debt,especially the huge hidden debt problem,is the top priority in preventing systemic financial risks.If this problem cannot be solved,the financial situation of local governments will continue to deteriorate,and it will also increase the uncertainty of future economic development and social instability factors.To this end,research on local government debt,including explicit and hidden debt,and propose related solutions are the practical needs of ensuring fiscal and financial security and promoting the coordinated development of local economic and social health.Government debt situation provides a reference.This article uses literature research,case analysis,induction and comparative analysis and other research methods,and combines theories of principal-agent and path dependence to analyze the current situation,problems and causes of local government debt in ZJ City.The study found that,in consideration of hidden debts,the debt burden of the local government of ZJ City is extremely heavy,which has far exceeded the usual warning standards.At the same time,the following problems exist in the local government debt of ZJ City:(1)insufficient development capacity of platform companies increases the difficulty of future transformation;(2)poor debt and interest solvency can easily lead to government debt crisis;(3)distortion of social credit environment increases social stability Hidden dangers;(4)the crowding-out effect worsens the regional economic development environment.After further analysis,it was found that the causes of the local government debt in ZJ City are various,but mainly caused by institutional obstacles such as the fiscal system,administrative management system,and debt management system.Based on this,the following suggestions are put forward: to solve the local government debt problem,we must prioritize and adhere to both the symptoms and the symptoms.Governance is mainly to accelerate the transformation of local government financing vehicles and to steadily promote the reduction of government hidden debt scale and debt smoothing.The root cause requires the improvement of fiscal management systems,deepening of administrative management systems,and sound debt management systems.