An Empirical Study On The Legal Issues Of Local Government Debt

The local government debt governance system is an important part of the national governance system and the modernization of governance capabilities.In order to improve the ability and level of local government debt governance and further standardize local government debt collection behavior,the State Council and the Ministry of Finance have successively issued a series of normative documents on the basis of the legal framework for the new revision of the Budget Law in 2014.From the aspects of debt collection,scale control,budget management,risk control,emergency response,and accountability,we have made specific provisions on the issue of local government borrowing.This marks the entry into the rule of law and standardization of the management of local government debt.In practice,there are still many problems in the legal regulation of local government debt.Among them,the local government's illegal and illegal debt collection phenomenon,the local government's debt exposure to multiple risks and the local government's debt supervision mechanism are particularly prominent.Premier Li Keqiang made a concluding speech at the Central Economic Work Conference in 2018: “We must promote the reform of the fiscal and taxation system,improve the local tax system,and regulate the local government's debt financing mechanism.” Taking this as an opportunity,it is imperative to regulate the local government's debt-raising behavior.The author will start with the case of the local government's illegal debt-raising background announced by the National Audit Office and the Ministry of Finance.Based on the prominent problems existing in the local government's debt-raising behavior,the author will start discussions on relevant issues and put forward suggestions for improvement.The standardization of local government debt problems is taken from the following three aspects: First,it inhibits local governments from illegally borrowing.The author believes that the reform of the fiscal and taxation system should be further deepened by clarifying the central and local powers and the scope of financial and financial expenditures,strengthening the construction of the local tax system by rationally dividing the tax types and proportions of central and local taxation,and actively promoting the opening of new taxes,and guiding local governments to establish correctness.View of political achievements.Second,to prevent and control local government debt risk,we should establish a standardized local government financing system,improve the local government debt accountability mechanism,and promote the openness and transparency of local government debt information.Third,to improve the local government debt supervision,we should improve the local government debt-related legislation,clarify the regulatory agencies and their distribution of authority to form a strong supervision system,and strengthen the legal constraints on credit rating agencies.