Discussion On The Institution Of The Debt Problem Of Local Government In China

In recent years, with the rapid local economic development, the debt problem of local government has become more and more highlighted. The scale of debt has expanded rapidly. Besides, some local government debt has exceeded the level of local financial affordability. The modest scale of debt can better help the local government perform its public service functions, but the debt burden will make local public finance sink into inadequate liquidity crisis, which will affect the health of local financial operations and restrict the sustainable development of local economy and society. Under these circumstances, the research on the debt of local government becomes an urgent need.First of all, the thesis analyzes the concept of local government debt and the statistics form of local government debt. Secondly, the thesis analyzes the characteristics and its impact of local government debt. Then, make an in-depth discussion on the reason for the local government debt from the point of view of the institution. Finally, the thesis put forward effective measure to rectify and regulate local government debt from the perspective of the institution.