A Study On The Local Government Debts In China

Local government debts is a reimbursement obligation to need undertaking to the creditor according to the law, agreement or contract by a local government; it is the summation of all kinds debts that government must repay finally, which forms by the Local government or its functional departments that borrow money directly, offer guarantee, owe a debt, etc. This thesis, consist of five parts, regards the Chinese local government debts as the research object. At first, this paper sums up the relevant theories of local government debts, defining the basic definition, describing the history of the public debts of local government since late Qing Dynasty and some successful experiences to controls the local government debts in the main market economy countries. Secondly, this paper takes a comprehensive analysis to the current situation and its risk assessment about local government debts, and explains main current laws and regulations and validity about the local government debt, analyzes the tape, the background and risk state of local government debts in China. Thirdly, this paper puts forward some short-term and middle-term countermeasures to solve the problem of local government debts, such as improvement of current laws, essential administrative measures, perfecting financial management system, implementing official statistics and debt reports and early warning systems, setting up payment fund, implementing comprehensive management. Fourthly, this paper researches the feasibility and mode choice for authorizing the local government to issue public bonds, and analyzes the advantages and possible risks coming from issuing public bonds by local government, and also puts forward the basic mode of issuing bonds of local government in China. Finally, this paper summarizes its research views and conclusions, and describes the development trend and policy prospect of the debt of local government in China.