Research On Governance Problems Of Local Implicit Debt In B City

In the Report on the Government Work of The State Council 2018,Premier Li Keqiang proposed to guard against and defuse local debt risks,prohibit the government from borrowing to form hidden debts in the form of guarantees and other disguised forms,and required the government to prudently dispose of the outstanding hidden debts.The hidden debt of local government is caused and left over from the special time in history.It originates from the hidden financing of infrastructure construction by the government in various ways when the local financial resources are insufficient.This kind of implicit debt has various financing channels,unclear debt scale,unclear supervision of the use of funds and debt repayment responsibility,and there are huge hidden dangers.Especially in today’s complicated political and economic landscape,Western countries led by the United States provoked economic and trade frictions,and the outbreak of the novel coronavirus pneumonia in 2019 dealt a major blow to China’s economy.Once the government borrowed investment to drive the economy method has obviously not adapted to the development of the new situation at present,and the stock of local government recessive debt has become an obstacle to the sustainable and healthy development of our economy and society.If we do not manage and guard against it,it will become a stumbling block in our country’s march toward socialist modern great power.Therefore,the governance of local government’s implicit debt is a subject of practical research significance,which is of great significance to China’s economic and social transformation in the future,to achieve national rejuvenation and to win the initiative in the international economic and political arena.B City is located in the northwest of Jilin Province and has a large amount of cultivated land resources.The output of corn and rice is in the forefront of the country,and it is a demonstration city of irrigation and water-saving.However,the economic aggregate of B city is small,the fiscal revenue is small,and the local government is short of funds.Over the years,in order to stimulate economic growth and strengthen services for people’s livelihood,local governments have financed a large number of infrastructure projects through financing platforms,resulting in a certain scale of hidden debt.Although the debtor of these debts is not the municipality of B ostensibly,the government assumes the obligation to service the principal and interest of the loans.If the financial fund shortage fails to repay the loan on time,the possible default risk will directly affect the liquidity of banks,and even lead to qualitative changes from quantitative changes to the whole financial system,resulting in fiscal and financial risks,affecting the credibility of the government and economic and social stability.Combined with the economic development and regional situation of B city,this paper studies the governance of B municipal government’s implicit debt,promotes the concretization of the implicit debt research,paints a portrait of the regional implicit debt,and provides a reference for the research of other local governments’ implicit debt.First of all,based on the international and domestic literature on the implicit government debt,this paper discusses the concept of local government implicit debt and related theories,and deeply analyzes the concept connotation and related theoretical viewpoints.Secondly,based on the actual situation of hidden debt of local government formed by investment in the construction of people’s livelihood infrastructure projects such as government shantytown construction and sponge project in B City,the scale of hidden debt of B City government is estimated in combination with relevant data from 2005 to 2020 released by the information disclosure platform of B City people’s government.Combined with the current situation of implicit debt,the theory of public goods,the theory of public choice,and the theory of fiscal decentralization,this paper analyzes the problems faced by B municipal government in the governance of implicit debt and the causes of debt.Finally,from the perspective of exploring the reform of the tax sharing system,cultivating the main tax source,rationally resolving the stock,standardizing the financing channels,exercising the supervision responsibilities of various departments,strengthening the construction of the cadre team,this paper puts forward the ideas and countermeasures of the governance of the hidden debt of B municipal government.