The Research On Performance Of Local Government Debt In Hunan Province

Hunan province is located in the middle part of China and the middle reaches of the Yangtze River.It occupies an important position in the national strategies of "Rising central China" and "One Belt,one Division".Facing the historical opportunity,Hunan province has been striving to reach the top and accelerate the high-quality economic development.In the process of economic development,local governments have huge capital needs and need to borrow a lot of investment.If local government debt performance is efficient,the local society and economy will get huge benefits;if local government debt performance is inefficient,the local finance and economy will suffer huge pressure and risks.In the 14 th five-year Plan of Hunan province,new requirements are put forward for improving people’s livelihood and optimizing industrial structure.It is expected that the scale of local government debt in Hunan province will expand in the future.Therefore,the research on the performance of local government debt in Hunan province is not only conducive to alleviating the financial pressure of local government in Hunan province,preventing debt risks,but also conducive to promoting the social and economic development of Hunan Province.This paper first compares the financial strength,economic level,debt status and strategic position of 14 cities and states under the jurisdiction of Hunan province in horizontal and vertical,and then uses DEA model and Malmquist index method to measure the static performance and analyze the dynamic performance change of local government debt of Hunan province from 2016 to 2020.The results show that the financial strength,economic level,debt scale and other aspects of the 14 cities and states under the jurisdiction of Hunan province are very unbalanced,Changsha takes the lead,and the whole province gradually declines from east to west.The higher the economic level,the better the financial structure of the region.In the DEA model analysis,the overall performance of debt performance of local governments in Hunan province is mediocre.The main factor lies in the waste of debt investment scale of local governments in Hunan province.The second factor is that there is room for improvement in debt management and supervision capacity of local governments in Hunan province.The paper also found that the debt performance of the 14 cities and prefecture-level of Hunan province showed no significant correlation with the local financial strength.In Malmquist index method,the performance of the local government debt in Hunan province slight decline,the comprehensive technical efficiency is progressive,the main problem is the lack of technological advances,the combination of14 cities in Hunan province state finance and economic level,this article found 14 cities in Hunan province state debt performance changes with the local economic level showed great relevance,This paper argues that the stronger the economic strength of the region,the more opportunities to attract innovative technology,high-end talents,high-tech enterprises,is conducive to promote the marketization of local government bond issuance,improve the efficiency of investment and construction projects,thus reducing the cost of investment and financing,and improve the performance of local government debt.Therefore,in the future,in the process of local government debt in Hunan province should focus on the regulation of debt,promote technological innovation,specific to the state around the city should be combined with local finance and economy level and its evaluation results,considering regulating the debt scale,strengthen supervision and management,promote the technology innovation and so on three aspects,grasp the main problems of unified planning,implement differentiation policy,Strengthen regional coordination.Represented by financial institutions,industrial and commercial enterprise external market may also affect the performance of local government debt,in Hunan province on the policy making in the future,should consider financial and fiscal,promote local government bonds market,abundant financing structure,reduce the cost of financial investment,to enhance the performance of local government debt in Hunan province.