Risks and Countermeasures of Local Government Debt in China ()
ABSTRACT
In recent years, local governments have adopted the
method of debt financing, which has promoted the development of economy and
society and accords with the requirements of macro policies. However, with more
and more demand of livelihood security and infrastructure, this has aggravated
its financial pressure for the limited regional finance. The local government
has increased its borrowing scale to meet public demand. The problems of local government
debt like huge size, imperfect management, opaque information, inefficient
supervision, and incomplete laws increase the risk of local government debt. This
paper did a detailed research on the current situation of the local government
debt that exceeds a certain limit financial risk, credit risk and efficiency risk.
Share and Cite:
Dai, S. (2020) Risks and Countermeasures of Local Government Debt in China.
Modern Economy,
11, 1611-1620. doi:
10.4236/me.2020.1110112.
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