A Research On The Accounting Issues Of Local Government's Public Debt Of China

The right of raising loan is an important part that belongs to financial power of local government in the separating-taxation.Local governments gain the right of raising loan,which is not only the infallible direction of fiscal system reform ,but also the necessary option of solving the fiscal difficulty of local governments and avioding the fiscal risk because of the implicit liabilities.It is significant both in theory and reality.By introducing credit management of overseas local Bonds, the article predicts the frame of raising loan in our local governments.For the management of local government's public debt, we should be combined with China's national conditions, under the existing government budget and accounting system, reform and innovation, then form a debt management accounting system. As government revenue, the government should establish a correct concept of financial management, in order to manage the local government debt funds well whether in micro or macro perspective angle. Not only to plan the size and structure of the debt, but also require the ability to use the debt capital to the application of the relevant projects reasonablly, efficiently and transparently, which need to build a complete accounting management system.In this paper, the local government borrowing on the basis of the legalization, from the perspective of microeconomic point of view, constructing a government bonds accounting management system, including local government bonds budget management, accounting, information disclosure and control system. Treasuries accounting management system as the core to the management of Bond funds for investment projects, combines with the budget methodology and accounting methods, discloses the financial information comprehensively.This paper is divided into five parts:The first part is the introductions on domestic and international studies on the issues of local government bonds, and from three aspects as the theoretical basis of issuing local government bonds, practical needs and the use of the references to the foreign Experience, discuss the rationality and necessity of the local government bonds, as the premise for the full text. And the contents of the system elements include the main qualification of the local governments issuance bonds, the direction of bond funds, and the use of the form of issuing bonds.The second part, in the management of the budget , operating income and expenditure of funds to do long-term planning the local government bonds, mainly for government investment projects. Rationally determine the size of bond issue, and in the capital budget adopt performance budgeting method, prepare the project budgets and protect the debt funds rationally and efficiently disposal. At the same time, in the total government budget level, prepare the current budget.The third part, the local government bonds accounting in conjunction with the use of the characteristics of bond funds, propose the main mode of the projects, and introduce the accrual basis, make out comprehensive accounting to the use of the project level debt capital, and meter the cost of the project; to the overall Budget debt levels also adopt the accrual system, expose the scale of debt in the total budget debt level, make the hidden debts transparently.The forth part, the local government bonds in the disclosure of information at the core of the project's capital budget and project accounting for the main course of the relevant accounting information should be full disclosure. Treasury's revenue and expenditure, as well as the entire process of project funds for the use and effects of accounting information is the main content of the disclosure. Bond information disclosure system formed a "pyramid" model.The fifth part, China's local governments control public debt management system including: a decision-making system - improve the management structure, the funds management system - government procurement and centralized treasury receipt and payment; internal control system - the system of budget management, financial control, risk management systems and also. Control system of local government bonds is the protection of micro-management, local government bonds is to achieve the necessary transparency in the management of the system design.