Research On The Risk Of Government Debt Expansion In N City And Its Governance Strategy

Local government debt is an important tool for balancing local government revenue and expenditure.After my country implemented the tax-sharing system reform in 1994,local governments borrowed a lot of money through financing platforms,funds,etc.in order to meet capital needs when fiscal revenue was insufficient.In 2008,my country’s economy was hit by the international financial crisis.Enthusiasm is high,and the scale of debt is accelerating.The development of local government debt has its inevitable factors,and government debt has become an important means for fiscal policy to increase effective demand.Through reasonable and standardized borrowing and investment,local governments can not only stimulate the healthy and sustainable development of the local economy,open up investment and financing channels for the local economy,but also enrich the supply of public goods and services,providing a guarantee for the completion of various indicators of local economic development..However,with the continuous accumulation of local government debt and the continuous expansion of the scale of debt,the development of local government debt has been exposed,and the government’s debt repayment pressure has continued to increase.At present,whether local government debt still promotes local economic development,especially the expansion risk of local debt and the risk management under debt expansion,should be the focus of our attention.On the basis of summarizing the research results of relevant scholars at home and abroad on local government debt,this paper studies the correlation of relevant basic theories and theories with government debt,debt expansion,debt risk,and risk governance.At the same time,based on reality,focusing on the future,and preventing problems before they occur,the research object is narrowed down to the municipal level,and the literature research method,survey research method and quantitative research method are used.This paper conducts an empirical statistical analysis on the current situation of government debt expansion in N city,and expounds the driving force of N city government debt expansion and the utilization efficiency of debt funds.The study found that there are many risks in the expansion of government debt in N city,mainly related to debt scale,debt structure,debt capital utilization efficiency,compliance of borrowing and debt default,etc.The main factors that cause debt expansion risks are N Irregularity of municipal government debt management,unreasonable debt risk indicators,illegal lending by financial institutions,and contagion of external risks.Finally,this paper puts forward the governance strategy of N city government debt from the aspects of regulating government financing behavior,exploring the establishment of risk early warning indicators,improving the performance appraisal and reward and punishment mechanism,etc.,to provide some references for effectively preventing and resolving the risk of local government debt expansion.