Study On Treasury Bond Issuance In The Early Stage Of Reform And Opening Up(1981-1987)

Issuing government bonds is an important means for the government to balance its financial expenditure and raise construction funds.Since the founding of the Communist Party of China,the reasonable practice of public debt policy has played a positive role in economic construction.The development and evolution of the Communist Party’s public debt policy is an important issue in the study of the Party’s history.However,from the perspective of existing studies,the academic circle focuses on the study of public bonds in the period of the new democratic revolution and the early period of the founding of New China,and there are relatively few studies on the issuance of national bonds in the period of reform and opening up.The existing research results of national debt in the period of reform and opening up have three shortcomings: first,the research Angle is relatively simple,mainly from the perspective of economics;Second,the research direction is relatively fragmented,mainly focusing on the problems existing in the issuance of national debt;Third,the research time span is large,mostly from the macro review of the development of national debt since the reform and opening up.In a word,there is a lack of comprehensive specialized research on Treasury bond issuance in the early stage of reform and opening up.In 1981,as the first national debt issued since the reform and opening up,it drew back our country’s new period national debt issuance history.It has significant economic and political significance.The government decided to use 1987 as the cut-off point for the research because the government bond market was established after the government bond market was closed.This thesis takes the Treasury bonds from 1981 to 1987 as the research object,systematically studies the historical background of the issuance of Treasury bonds at this stage,focuses on the policy implementation of the issuance of Treasury bonds,analyzes its characteristics and effects,and summarizes the experience and lessons,so as to play a reference role in the improvement of the policy of Treasury bonds in the new era.In the early stage of reform and opening up,in order to adjust and restore the national economy,improve people’s livelihood and pay back the old debts,the central government introduced many measures to increase expenditure and reduce revenue,resulting in a large fiscal deficit for several years in a row.At the same time,the socialist modernization drive was also speeding up,and the state was strapped for funds.In this situation,the central government broke through the ideological shackles of "no debt superiority theory",dialectically looked at public bonds,and decided to issue Treasury bonds in 1981.Since it would take a long time for the economy to recover,and the country’s overall finances were still a little tight,Treasury bills continued to be issued in subsequent years.The Ministry of Finance and the People’s Bank of China jointly formulate the detailed work on the issuance of Treasury bills.Through ideological mobilization,the government constantly propagandises the importance of buying Treasury bills to the masses;To establish a leading organization responsible for specific organizational mobilization;Set up a model,build social guidance;And constantly improve the issuance policy to meet the needs of the people to mobilize the masses to buy Treasury bills.As for the use of funds,the funds raised in 1981 were basically used to cover the fiscal deficit,and the funds raised in the following six years were mainly used for national investment and construction.The repayment of Treasury bonds at this stage can be subdivided into two periods.For the Treasury bonds from 1981 to 1984,the principal will be repaid five times in five years according to the average amount of the purchase,starting from the sixth year after the issuance.The interest will be paid in one time at the time of repayment.In the 1985-1987 Treasury bills,the principal and interest were repaid in one lump sum in the sixth year after issuance.The salient feature of Treasury bills in 1981-1987 was that they were not circulating in the market;Secondly,the object of issuance is to gradually expand to individuals from the government,enterprises and other units in the first year,and focus on individuals.The third is to issue only one maturity of Treasury bonds each year,the term structure is slightly single and the repayment period is longer.As a kind of working object,national debt has no special properties in nature,but when different subjects use it,they give it different properties.The national debt issued by our country can be freely subscribed by the people.The funds raised are mainly used for national construction.The ultimate purpose of the debt issue is to promote economic development and improve people’s living standards.The national debt of capitalist countries is mainly controlled by capitalists and is used as a means to maintain the rule of the bourgeoisie.Compared with the two,China’s national debt is more popular,extensive and constructive.Treasury bonds issued from 1981 to 1987 played a positive role in easing the country’s financial predicament,stabilizing prices and promoting steady economic development.The government keeps pace with The Times and improves the issuing policies in the issuing work,which also lays a foundation for the establishment of the national debt market in the later period.Due to the influence of The Times and the lack of issuing experience and other factors,there are some deficiencies in the process of Treasury bond issuance.However,the Communist Party of China has the courage to face the problems and properly handled them,which shows the responsibility and sense of responsibility of the Communists.The issuing of national debt in the reform and opening period also provides valuable experience and lessons for the perfection of the issuing of national debt in the new era.In formulating the policy of national debt in the new era,we must adhere to the principle of seeking truth from facts,scientifically plan the scale of issuance and constantly improve the management system of national debt.At the same time,it is necessary to raise the awareness of debt risk and strengthen the means to defuse the risk.Relevant departments have strengthened supervision of the bond market to prevent illegal elements from disrupting the socialist market economy.The government should adhere to the concept of people-centered development and properly arrange the flow of funds to make national debt a powerful booster for the great rejuvenation of the Chinese nation.