Study on Issuing Local Treasury Bonds of China
|School||Hebei University of Economics|
|Keywords||Local government bonds Urban infrastructure Debt problems Long-term mechanism|
Local government bond is a debt obligation to the community to raise funds for the premise of the local government according to the region's economic development and financial needs, to be liable for the debt service. It is a price of bonds, but also a means of local government financing of infrastructure funding, generally used for the construction of local public facilities, transportation, hospitals, communications, housing, education and sewage treatment systems. In order to cope with the international financial crisis, expanding domestic demand and maintain economic, steady and rapid development, China's implementation of the proactive fiscal policy and moderately loose monetary policy. To further complement the proactive fiscal policy, enhance the ability of local arrangements for matching funds and expansion of government investment, in 2009, the Ministry of Finance issued 200 billion yuan of local government bonds. This is the first nationwide local government bonds issued. In our country, through the issuance of local government bonds, not only can effectively regulate local government financing channels, but also can reduce the risk of local government finance. Therefore, for our country, not only should issue local government bonds as a proactive fiscal policy response to the financial crisis, and should build long-term mechanism for issuing local government bonds, financing for China's economic construction. This paper is divided into six chapters. The first chapter is the introduction to the article, the main topics of the background, the purpose and significance of the research, Review of the Studies and Research Methods and innovation. The second chapter of local government bonds overview, first departure from the basic concepts of local government bonds, summarizes the types and characteristics, and then from the public goods and public finance two angles, this article explains the theoretical basis of the issue local government bonds. That the functions of local government with the provision of local public goods, and can achieve efficiency requirements is the main provider of local public goods: local governments can make up the market in resource allocation defects and improve the efficiency of resource allocation in the region, to meet the region the diverse needs of residents of public goods; accordance with the principle of unity of powers and financial authority, local governments should have the appropriate lift debt. Chapter III describes the course of development of local government bonds, local government bonds in China is a \agent of local governments to issue bonds, it formed a true sense of the local government bonds. Chapter IV, in Hebei Province, the necessity and feasibility analysis on the issue of local government bonds. First analyzes the current situation of the infrastructure construction in Hebei Province, pointed out the problems of its infrastructure financing mechanisms, including: the financial burden is too heavy, the lack of a standardized and efficient financing platform, low degree of market-based financing system, and concluded, To change the backward infrastructure construction in Hebei Province, the lack of funding the status quo, and the need to issue local government bonds to attract private capital to participate in the construction of urban infrastructure; Second, the article also explains the debt problems of Hebei Province, including diversity in the investigation and Service County (township) the size of the debt, there are a lot of hidden debt and debt problems, help to regulate the issue local government bonds, Hebei Province's debt, strengthen debt management, preventing local debt crisis; Finally, the analysis of economic development in Hebei Province the status quo, the community should debt capacity, financial development status, and so on, and on this basis, to feasibility analysis. Chapter V, the different regimes of the two countries, the local government bond market in the United States and Japan. The United States is a federal state, with the world's most developed municipal bond market, the municipal bonds in the United States is a very attractive financing instruments. The article details the development process, types and characteristics of the municipal bonds in the United States carried out a detailed analysis of the mode of operation and risk prevention mechanism of U.S. municipal bonds. Japan is a unitary state system of government, local bonds in Japan, began as early as in the early years of the Meiji issue. In 1879, Japan established the principle of \Its Local Government Securities, mode of operation and risk prevention mechanisms were discussed. Of different regimes country on the local government bond issuance and management experience in China has great insight, we can learn from and learning. Chapter VI, the departure from the international situation and China's specific national conditions, China should not only be to issue local government bonds as a proactive fiscal policy to cope with the international financial crisis, and should build long-term mechanism for issuing local government bonds. The article draws on the experience of the developed countries, the issue of local government bonds, try to be the design of the system, and through the improvement of the institutional system and risk prevention mechanism, the corresponding measures, including improving the reform of the tax system, system of legal protection, investment and financing system, as well as establish an information disclosure mechanism, the credit rating mechanism, supervision and management mechanism, debt repayment mechanism and insurance mechanisms in conditions of effective supervision, autonomous and independent issue local government bonds, the real play to their strengths, so that the local government for the local economy construction financing, promote local economic development.