Research Involving The Debt Of Baiyin Under Fiscal Decentralization

Fiscal decentralization reform has effectively mobilized the enthusiasm of local governments to promote local economic growth. Because of some faster growth of the demand for local spending, but slower growth in fiscal revenue the local governments can only borrow to further develop the regional economy. With the rapid growth of economic, the scale of local government borrowing has expanded each year; the local debt risk has gradually has threat to regional economic development and long-term stability of social life. Study for local government debt, and avoid the local government debt risk was ensure the operation of economic under the local government and stability of local social life is great significance.First, the article did review the theory of fiscal decentralization and the relevant theory of local government debt, on the basis of understanding the these basic theory, from the perspective of fiscal decentralization, elaborate the local environmental structure of government debt, local government is different from the centralization of power under the central government; based on the basic functions of local governments under fiscal decentralization, to analyze of demand for local government debt; and then analyzed the conditions of local government debt under fiscal decentralization conditions,for to prove the existence of risk's possibility of the local government debt. On the basic of these theoretical, in the second chapter of the paper analyze the local government debt based on Baiyin, to explore the definition of local government debt, statistical standards, the nature of the debt structure, sources and uses of government debt, local government debt and so on, and thus gain an initial understanding of the local government debt. After it analyze the nature of Baiyin government's debt composition, sources and uses of the debt and both sides produced effects of the local government, then to explore building the early warning system of local government debt risk. Several indicators were selected by using factor analysis, to control the scale of local government debt risk. When the early warning system of local government debt risk's early warning appears it needs of local governments to control the size of the debt. So the last part of this paper was on the basis of research on the scale of local government debt to make relevant recommendations to control measures.