Risks And Prevention Research On Local Government Debts Of Y City

Before the Budget Act was revised,the local government was not allowed to issue bonds,and in order to solve increasing fiscal expenditure and limited fiscal revenue,the local government had to finance through various channels,thus resulting in the continuous expansion of local government debts.However,there existed such problems as government becoming debt-ridden,insolvency,illegal financing and disguised irregular fund raising in some local government and the State Auditing Administration had sounded the alarm twice in local government debts due to the lack of effective supervision as well as the scarce capacity of debt repayment.This problem has already been drawn the attention of the State Council and economists both at home and abroad,and if the local government debts cannot be prevented appropriately,it will finally have a negative influence on our country’s economy.In this paper,the author collects all kinds of data and information about the local government debts of Y city and points out existing risks through describing the status quo of this city’s local government debts,then analyzes them,and finally puts forward the optimum preventive suggestions on the risks of this city’s local government debts under current social circumstance.This paper is composed of nine parts.The first is introduction.The second is the theoretical basis of the risks and prevention of local government debts.In this part,the author will explain the difference between the debt of local government and the local government debts,and then illustrate three risks of the local government debts:scale risk,insolvency risk,and management risk.Finally,the author will discuss how to prevent these three risks theoretically.The third part is the present status of the local government debts in our country.The fourth part is the risk prevention and management for reference of abroad local government debts;the author will conclude four countries’ experience as well as modes,including America,Britain,New Zealand,and Brazil.The fifth part describes the status quo of this city’s government debts beginning with the development history of Y city’s local government debts,and analyzes the risk in the aspects of debt scale,debt paying ability as well as management.The sixth part analyzes the reason of the existing risks of Y city’s local government debts.The seventh part concludes measures adopted by the government for preventing the risks of government debts and the effect evaluation.And the eighth part puts forward preventive suggestions aiming at the risks of Y city’s government debts.The author puts forward detailed preventive measures from the three aspects respectively:controlling debt scale,improving debt paying ability and strengthening debt management.The ninth part is the conclusion.