A Study On The Prevention And Control Of Risk Throughout The Life Cycle Of Local Government Special Bonds At The County Levels

After the Enact of the new Budget Law in 2014,the central government has given local governments the right to raise bonds in accordance with the law,and local government special bonds have played an important role in bridging the local financial gap,standardizing local government financing channels,supporting the construction of local public welfare projects,and promoting regional economic and social development.The report of the 20th Party Congress once again emphasizes the need to fight the battle to prevent and resolve major risks,and to use special bonds in accordance with the law.Special bonds are not counted as deficit in budget management and are included in the management of government fund budget,the capital for repayment of interest comes from the own income of special bond projects and does not take up local financial resources.Therefore,under the background of large local expenditure responsibility at this stage,specialized bonds become the prime option for local government financing.However,in the process of special bond management,county governments,as the initiators and users of special bonds,often have the phenomenon of "issuing but not managing",which leads to a series of problems in the whole process of special bond management,such as low quality of projects,slow progress of spending special bond funds,and high pressure of debt repayment in the later stage.These problems,if left unchecked,will lead to large-scale risks,which is contrary to the original intention of using special bonds to ease the pressure of local finance on project construction.To study the risk management of county government special bonds,this paper analyzes the possible risk points of County D in the reserve phase,issuance phase,management phase and repayment phase of special bonds by applying public debt theory,public risk theory and whole life cycle theory.In the study of County D,it is found that the county level is the weak link in the management of special bonds of local governments due to various factors such as conceptual awareness,financial system and organization and management.While the county government is the first processor and responsible person for the use of special bonds,and the effectiveness in the work related to special bonds directly affects the driving effect of special bonds on investment to improve people’s livelihood and needs to be improved.Therefore,drawing on the excellent experience of special bond management in various cities and counties,the paper proposes feasible suggestions in stages for the risks of the whole life cycle of special bonds in County D,and recommended that County D improve the quality of special bond projects,as well as the efficiency of bond funds use.Taking County D as an example,a set of risk management measures for the whole life cycle of special bonds suitable for County D is explored.