Study On Problems And Countermeasures Of The Budget Management Of The County-level Government’s Debts

In recent years, debt financing was frequently used by local governments at all levels in order to improve public services as well as economic development. It’s no doubt that such kind of debts plays a positive role in strengthening infrastructure construction, improving people’s livelihood and social undertakings. However, there’s hidden risk for the increasing scale and management for lack of standardization. In December 2013, it was proposed for the first time that classified debts of local governments should be included in the full-caliber budget management on the Central Economic Working Conference in order to promote source control.However, study on the management of budget of local government’s debts still remains a weak one in theoretical circles of China at present. Management of budget of the local government’s debts was rarely involved in existing literature. What’s more, there’s a great shortage in the discussion of the fundamental theory and procedures of debt budgeting. In practice, although experimental budget of government’s debts was made by some local governments, seldom substantive progress was made because government’s debts rarely involved in budget management for a long time and this exploration was mainly confined to the governments of prefecture-level cities. As for the budget management of the county-level government’s debts, research both theoretically and practically was rarely found. The most important reason is the lack of a unified debt budget framework. It’s also the research background of this paper.Using the method of qualitative analysis, quantitative analysis and comparative analysis, this paper put forward a comparatively systematic research framework of the budget of county-level government’s debts which is expected to benefit the budget management of county-level government’s debts. To achieve this goal, this paper puts forward five principles of the management of the budget of county-level government’s debt from the aspects of the theoretical basis, practice, comparison of international experience and budgetary framework, extracts three models of the management of budget of county-level government by constructing the framework from the aspects of financial statements and budget process, and finally suggests the supporting measures to improve the management of the budget.It’s the most fundamental way to bring local government’s debts into full-caliber budget management. A full-caliber budget management means high-efficiency management including all the public income and expenditure. As for the present situation, it covers four systems, i.e. public finance budget, governmental funds budget, state-owned capital management budget and social-security budget. It’s not the right time yet to regard government’s debts budget as the fifth leading budget in view of the facts that it’s just starting and the reality of the structure of the local government’s debts. In order to adopt different budget management pattern according to different types of debts, specialized county-level government’s debts budget should be made and connect it to public finance budget. Financial debt should be regarded as supplementary budget of the public finance budget while no budget should be made for financing debt which should be incorporated in the plan for fiscal management to comprehensively display the scale of income and expenditure, structure, direction and efficiency of the county-level government’s debts.