Study Of Our Local Bond Issues

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.At present,the local governments have not the warrant of issuing local bonds in China. After reforming of the tax-sharing system, the governments have basically compartmentalized income and expenses. Along with the reform deepening,the local governments need provide more local public goods .Our country has the essential to issue local government bond, at the same time, the conditions of local government bond issuance have been provided with in China .Endowing with the bond issuance right to local governments will availably foster local economic development .This thesis is divided into four parts:In the first part, the principle theory of local bond is discussed. Above all, local bond is defined, including the concept ,character ,and function .Then ,the warrant of issuing local bonds is explained in theory.In the second part, the international experience will be employed .The practices analyses and comparison, the revelation to China's local government bond issue is provided with.In the third part, the necessities and the feasibilities of establishing China local bond system are discussed respectively.In the fourth part, the advices of local government bond system design are given.