Research On Governance Of Local Government Debt Under The Background Of New Budget Law

In recent years,the debt problems of local governments have been exposed in many places,and the local government debt has gradually aroused people’s attention.Local government debt is the main way to relieve local financial pressure,but the annual increase of debt has increased the crisis risk of local government debt,which is a big challenge to China’s social and economic development.Therefore,timely and standardized governance of local government debt has become one of the current key tasks.The Budget Law provides a general and principled standard for local government debt.The Regulations on the Implementation of the Budget Law,promulgated in 2020,effectively supplemented the Budget Law,responding to the major decisions of the CPC Central Committee on fiscal reform and elaborating relevant laws on local government debt.However,due to the large number of local government debts,the reasons for borrowing are complex and diverse,and some debts are old,the existing legal system is difficult to effectively govern.Moreover,the nature of local government debt in China is very different from that in the West.Western countries are mostly consumer debt,while China is mostly constructive debt.We should not blindly learn from other countries’ experience.We should combine China’s specific national conditions to enrich the governing framework of the budget Law and make it form a perfect governance system.Therefore,through this article,the author clarifies the causes of government debt risk in China,and has a general understanding of the real situation of local government debt in China through data inquiry and practical research.Reflecting on the practical and theoretical difficulties of local government debt in China,combining with the Budget Law and the Implementation Regulations of the Budget Law,this paper puts forward suggestions to improve the risk of local government debt.