Countermeasures Of Jilin Province On Local Treasury Bonds Issuance And Management System Transformation

Local treasury bonds refers to the credit of the local government in accordance with the principles, to bear the responsibility for the sake of the repayment of financing debt voucher, the revenue of local government and local public agencies to issue bonds. Local treasury Bonds general infrastructure and the provision of public goods.The same as the Central Government, the national debt securities issued by local treasury bonds generally is based on the ability of the local government revenue as a service guarantee.2007, the outbreak of the subprime crisis in the United States has thrown the global financial crisis, the world has had a serious effect on the economy, in order to alleviate the crisis to China's economic growth, the negative impact of the 2008 on 9 November, the Chinese Government announced by the prudent fiscal and monetary policy from tight converted to positive fiscal policy and moderate lax monetary policy.In order to further expansion of domestic demand, promote economic growth by the end of 2010, decided to invest 4 trillion yuan.Subsequently, local governments have been issued for meeting their financial investment plan, 24 provinces of total capital investment plan is as high as 18 trillion yuan.In contrast to the Government the rising levels of fiscal expenditure, the Government's fiscal money a larger decrease, to compensate for increased financial windfall profits for the branch of the Central Government in the formation of the gap, the proposed arrangement of the central government deficit of $ 75 billion, and the total issue amount $ 200 billion of local treasury bonds.This is the resumption of the national debt since 1981, for the first time in our country since the official release of local treasury bonds, its issuance and management system and to change compared to the past.Such a shift, makes the Jilin province, in reality faced by the State of the existing legal constraints which the island's increate, pressing, paying $ 11 million) notes the existence of relatively developed provinces and subscription pressure and developed provinces economic development gap between the increasing and so on.To effectively address these issues, through the system transformation and changes on the effect of Jilin province to analyze the causes of the problem.Local treasury bonds in the form as a percentage of GDP, one of the founding of the early in China already exists.The Chinese local treasury bonds originated in the early establishment of the Republic of China, such as early as 1950, North-East people's Government on the Northeast production and construction issued after discount bonds.But l981 years since the resumption of the debt, I've never release of local treasury bonds.In 1993 the State local treasury bonds was clear,"halted"because the"suspected local government capacity to honour a"incurred.On 1 January 1995 and promulgation of the budget the law clearly stipulated in section 28, in addition to the law and to the provisions of the State, local governments shall not issue local treasury bonds, have maintained this ban to the consent of the State Council for approval in 2009 issue of local treasury bonds.In order to better tackle monetary form on the economy, restricting the development of nationwide to take multiple channels to a variety of ways for their loans, these traditional""local treasury bonds.One option would be to place the main body of a trust company for their loans.The second is in the form of corporate bond financing for local infrastructure.Thirdly, after the central issue Treasury bonds to local onlending loan or subsidies.Four is the national debt in a small number of Central Government on behalf of local treasury bonds.Fifthly, 2009 public offering of local treasury bonds.This local treasury bonds to be issued, amounted to $ 200 billion, an accommodation by the Ministry of finance, but compensatory and interest are issued by the respective provincial local government commitment to enter at the corresponding level of the budget, subject to the supervision of local people's Congress, notes are the 3-year interest-bearing debt, solid and will carry interest at the release of the prevailing market rates to determine.This local treasury bonds issuance and management system compared to the past essentially has highlighted the main status of local government, through further rationalizing the relations between the Central Government and local government finance system, strengthened local Government's administrative functions, clarified that the authority for the local people's Congress subject position, makes it possible for local governments with greater autonomy.One is the issue of bonds subject of furthering local fiscal reform.Second, the capital allocation of play a local autonomy.Thirdly, supervision and management of the local people's Congress functions.The core of the system change is implemented in local government.In this issue of local treasury bonds only clear before, the Central Government's debt, and for the local Government's treatment of the debt is very unique, on the one hand allow local government to carry out certain items in the name of guarantee or a disguised form of guarantee, on one hand and the local government is not allowed to own credit guaranteed to directly to the public borrowing or investment.The local government lift the debt, the fragmented nature of local governments directly led to massive use of its own credit for some items in a disguised manner the recognizance is financing to solve the problem of uneven revenue and expenditure, to receive a large number of local governments implicit liabilities and contingent liabilities.Claims of the local government to carry out lift, can effectively reduce local governments implicit debt and contingent liabilities of the scale, to reduce the risk of hidden financial local government and better maintenance of local government credit.Combined with the actual situation in Jilin province, analysis of the institutional changes in pulling regional economic growth, increasing the provision of local public goods, to raise the efficiency of the use of foreign investment and local financial risk, setting up a sound social security system and broadening in areas such as investment channels for residents to economic development in Jilin province brings opportunities, risks, in which the island's Government bonds to pay all debts are investors, narrowing the gap between developed provinces economic development, and so on for the Jilin Province brought new challenges.As a result of the new system is not yet perfect, so in mitigating the burden of the Central Government, efficient use of capital, and the future possibility of continuous issue local bonds, and so on, also there is the effect of uncertainty. In the study of the United States, Japan two representative countries in local treasury bonds issuance and management system on the successful experience, from a macroscopic and microscopic two efforts, put forward in the domain that you want to strengthen the social credit system, to strengthen its monitoring and improve the funding of capital efficiency, to establish a unified regulatory agencies and risk monitoring system, to issuance of local treasury bonds, etc. within the province should be room for improvement, and calls for national legal restraints, as soon as possible into exploding sound management system reform, enhanced local financial and implementation of local treasury bonds insurance system, and so on a number of suggestions and comments, I hope to be able to help more effectively address in Jilin province in local government-issued during the management system problems, expect to be able to grasp in Jilin province historical opportunity, to handle the challenge, strive for better and faster development.