The Research On Risk Management Of Local Government Debt

X district belongs to J Province,an economically developed regions on the south of the Yangtze River.In 1992, X district on the basis of the suburban land area,was approved to be a state-level high-tech Industrial Development Zone, and it was also the first batch in China.Development Zone inevitably faced with a large number of house demolition and infrastructure construction.Starting from the beginning of 2004,X district began to establish financing platform company,to solve the problem of insufficient construction funds in the development process. After continuous development with debt,especially in 2008 proposed the "four trillion" infrastructure investment plan by the Central Government.It achieves exponential growth in debt balance for X district’s financing platform, and faces greater risk.It is undeniable that the integration of funds through the platform, can effectively solve the problem of insufficient funds to support the rapid development of X district. However, in the face of such a huge debt balance, if we don’t analyze the risk of debt timely, plan to resolve the debt risk initiatives early,it is very easy to trigger regional financial risk.Through analyzing X district’s financial situation, economic situation,financial situation, debt products, platform status, and management system, it can research X district’s local government debt research aiming at analyzing the X district’s debt risk management, to offer the countermeasures for X district to solve infrastructure and social public funds, strengthen the management of local government debt problem. The perfect mechanism of local government debt management about X district, prevents and resolves the debt risk and provides a reference. At the same time, it shows a certain reference value to strengthen the relationship between government debt management and the development of the economy, to regulate the government investment and financing platform,to establish debt early warning mechanisms and debt service mechanism. This paper effectively grasps government debt scale expansion and debt management under the status,where county-level government’s GDP is on rapid growth.Through the analysis of debt formation reason on the financial system and the evaluation mechanism, we can give some advice on the management, to improve the public finance system, to improve the local governance level, especially local government debt risk early warning mechanism, prevention of local fiscal risk and financial risk. This paper has a strong theoretical significance.In front of the paper to write, I spent a month’s time, visited x District Finance Bureau, Economic Development Bureau, Construction Bureau, Planning Bureau, Land Resources Bureau, Urban Management Bureau and major government financing platform, get a detailed understanding of the X district of the economic and social development of the basic situation, the government investment projects, the detailed process and the functions of the relevant departments in the government project management, the role of government debt management related mechanisms, institutional settings, and platform company’s role and specific details of the operation in the government investment and financing process. I also collected lots of first-hand information, and made a summary of the analysis. Finally, this paper puts forward some suggestions on how to make the debt plan, the financing ability, the sustainable development and the establishment of risk early warning system based on the empirical study of the X district.