Local Government Debt Risks And Preventive Strategies

Local government debt risk is concentrated on the local financial risk, from narrow sense speak the local government debt risks mainly refers to the debt risk itself of the local government debt, the broad sense local government debt risk contains the risk of local finance some burden, in a sense the local financial risk is local government debt risk.Since the reform and opening, local governments conform to the trend of the informationization and globalization, actively promote industrialization and marketization reform,as a result a lot of local government debts are produced in recent years, especially after the two financial crisis, China implemented macroeconomic control policy, the different levels of local governments respond to country policy called for, and constantly expand financing scale, causing the construction of debt risk increasing. This paper taking certain county of Hebei Province as an example, divided into five chapters. From local government debt risk, expounds the theoretical base of government debt, local government debt and local government debt risks related theory knowledge, it were analyzed present situation of local government debt risk and its influence, summarizes the reasons generation debt risk and the existing problems, and from the deepening the reform of public finance system, the development of the local economy, perfect administrative functions, improve debt management mechanism, establish the risk early warning systems, build a good external environment, puts forward the preventive local government debt risk countermeasures.