The Research On The Issue Of Local Government Bonds In China

Local governmental bond, is an important part of government bonds system, just like the national bond. As a normative financing way, local government bond has gone through long-term's practical examination in those countries that have relatively perfect tax-sharing system. Because of the advantages of it, such as: primarily being used to local infrastructure, the more flexible operation, the better reputation and the lower financing cost, etc, it has been used as an important financing tool in developed countries.The analysis of the theory of the local governmental bond has been in the paper. Because our country law prohibit that the local government issue bond. In order to accelerate the development of economy, many local governments had a large covert debt, financial condition worsen rapidly. It is the time to permit that some local government issue bond.Now the conditions of local government bond issuance have been provided with in China. Endowing with the bond issuance right to local governments will availably remedy the local public finance gap and foster local economic development. On the other h and, it is essential to promote financial market development in China. I discussed some maters as follows: the necessity and feasibility of issuing the local governmental bond, the elementary assumption of erecting the system of local governmental bond, some problems of issuing the local governmental bond need to deal with.