The Problem Of Indebtedness Of China Country's Research

The county governments'debts have tended to increase and enlarge year after year since 1990s. The most local governments in china are in debt in various degrees. Since the country debt are enormous and difficult to solve, this article is concerning on the grass-root governments with the heaviest debt burden. The huge amount of debt itself has brought numerous influences and disadvantages to the development of the local economy and public service, and even seriously affect the stability of the grass-roots political power. So the debts of local governments have become a serious problem threatening China's development which needs to be solved as soon as possible.In this article, the debt of the grass-root governments is studied. The current status and characteristics of rural debt is analysis comprehensively, both positive and negative effects of rural debt are also introduced.On this basis, the paper explains how the grass-root governments come into being from the level of economic development, government functions and so on. Overall, the formation of rural debt is complex, and the imperfect of existing institutions and mechanisms is to the main causes of rural debt. The paper also built a model to asses the rural debt's risk, the management of rural debt's risk are discussed. too about how to prevent and resolve rural debt's risk, this article put forward policy recommendations mainly from the view of financial system, transformation of government functions and debt risk management, the relevant policy recommendations focused on improving our public finance system, promoting rural financial system reform, and strengthening of rural debt risk management.