| At this period, although The Budget Law & The Sponsion Law with other relevant laws in P.R.C. have clearly defined that local governments at all levels must implement the balanced principle in budgeting, the fiscal deficits as well as the government financing are forbidden for the local government at all levels. However, as a certain level of the local government, the county government not only has the existence of government debt, but also has great financial risk causing by the big huge amount of government debt. The heavy burden of debt at the county level governments makes a great threat on China's sustainable economic and social development. For it will lead to a series of problems, such as exerting negative influence to the running conditions of China's macro- economy and social stability, distorting the functions of the government, impeding the development of county economy, undermining the legitimacy of a county government, inducing the decline of the capacity in social mobilizing. Therefore, in our country, the issue of county government debt reached its point where the solution must be put forward, otherwise the consequences would be unthinkable.Further study of this issue has certain practical meaning.In this paper, the author will take the issue of Chinese government debt at the county level as the research subject. And with a conclusion of the theories on government debt and an accordance of the matrix in financial risks by a World Bank economist Hana ? Polackova, the paper will study on the content component of the government debt at the county level, and will investigate the characters of the government debt at the county level in our country. It will also deeply analyse the reasons why the issues of county government debt formed. All the studies above give two main directions on how to solve this problem: First, it is necessary to adopt the reasonable steps in solving it. Secondly, we should find the corresponding solutions to debt problems of Chinese county governments from both in and out of the system. These views are somewhat conclusive, focused and innovative which may be effectively helpful in solving the government debt problem in our country. |
