Study On The Existing Problems And The Reasons Of Local Government Debt In China

At present，our local government debt scale is large，and there is a rising trend. As of the end of2010，the total balance of local government debt in China reached10,717,491,000,000yuan inChina，for the first time it was more than one hundred thousand yuan. The local government debtproblem has been exposed，the research on local government debt problems and reasons have beento imminent stage.The local government is an important part of the national constitution，the harmonious andstable development of the local government directly determines the whole of the country’s stabilityand unity. The local government debt problem would bring certain influence to the localgovernment，the local government debt problems and reasons need to be studied in time，it preventproblems continue to expand and affect the development of social，economic，political and otheraspects and so on.The contents of the article is mainly present condition analysis of local government debt，thenfind the existing problems，causes of problems and the formation make further research. The articleinclude five parts: The first part introduces the theory foundation，including market economicsystem，relates to the theory，the theory of public finance and local government debt theory; Thesecond part is the present situation analysis of government debt，so that grasping the structure andscale of local government debt; The third part is the analysis of finishing of local government debt.Find the total scale of government debt is large，debt structure is complex，debt responsibilityrestraint weakened and the lack of effective credit mechanism; The fourth part is the analysis ofcauses of local government debt. Based on the cause analysis，it can be summed up as the followingfour points: the economic system and policy reasons，financial system and institutional reasons，debt management and governance mechanisms reasons; The fifth part has carried on the inductionand the summary to this article，and it put forward a few suggestions.