Study On The Constraint Mechanism Of Local Debt Risk In China

Local governments play an important role in the development of local economy through appropriate debt financing to support the construction of key infrastructure projects,improve municipal facilities and rail transit,improve people's livelihood,precision poverty alleviation,ecological protection,and respond to crises.Moderate government borrowing can not only generate investment but also drive economic growth.What's more,it can effectively stimulate private investment and stimulate market vitality.However,due to the lack of local debt risk constraints in our country,there are some typical illegal and illegal debts in some places,so we must find a way to restrain the local debt risk in China.Under the premise of implementing the socialist economic thinking with Chinese characteristics in the new era of Xi Jinping,this paper takes the research of the local debt risk restraint mechanism as the research perspective,starting with the local debt risk theory,and adopting the theory of local debt risk restraint,principal-agent theory,and budget soft constraint theory as articles The theoretical support;then the use of comparative methods to analyze the status of China's local debt risks,such as: the total debt to maintain growth,the use of debt funds is not efficient,the main body and method of borrowing is not standardized,debt repayment pressure after2017,etc.;then analyzed our country The manifestation and formation mechanism of local debt risk further reveals how the debt risk is formed and between which departments the debt risk will be conducted;Chapter 4assesses the local debt risk in China from the perspective of assets and liabilities and related indicators.The current situation of China's local debt risk constraints,according to the requirements of the national supervisionsystem since the implementation of the new "Budget Law" and the report of the Nineteenth Congress,clarifies the changes in the local debt risk constraint mechanism in China;For the insufficiency of the constraint mechanism,Chapter 5 designed our country's local debt risk restraint mechanism.The design of the restraint mechanism starts with the outflow of debt information.Through the outflow of debt information,the constraint elements integrate the judgement of out flowing debt information,and then feed back the results to the government.Finally take measures to limit the local debt risk.Finally,in conjunction with the full text,we propose suggestions for improving the supporting measures of China's local debt risk restriction mechanism,such as: controlling implicit debt,changing the direction of fiscal policy,enhancing the level of local government self-debt,improving the professionalism of third-party assessment agencies,and strengthening the supervision of people's congresses.Social supervision,reduction of blind investment,strengthening of investment risk management,implementation of accountability system for debt risk and investigation system.