Resarch On Issues Of Local Bonds In China

For claims is the standard tax system should be given the financial powers of local government, the separation of powers is to improve the financial system in rural areas. Empowering local governments claim is made public goods theory and the theory of the separation of powers requirements. Japan and the United States and other Western countries have had several decades of experience in local government issuers, through the issuance of local bonds for local governments to raise the necessary funds, local government bond issue is the public finance system to raise funds under the government's common practice. In the current financial pressure on the central government and local governments tremendous shortage of finance, The issuance of local bonds have been inevitable.Based on the inspection of the extensive literature on the basis of local bonds from the theoretical basis for local and foreign bonds issued by the experience, with the actual conditions of our country, the first in China to issue local bonds on the need for analysis The Bill proposes to empower the local government claims is improving the tax system will require, and can ease the financial pressure on the central, Optimization of the debt burden structure, and standardize the investment and financing of local govern- ment, urban construction to provide the necessary funds. Then on the basis of the current issue local bonds on the conditions for the trip, think that China is ready to issue thebonds in the local conditions. Meanwhile, I have also analyzed the problems and hidden risks on the current local government bonds , finally reach a conclusion : China's local governments should be allowed to issue bonds, but should first improve related conditions, then be part of the large and medium-sized cities in the implementation of the pilot, such as the conditions are ripe then across the country.