Promoting the Reform of Local Government Bonds in China
Abstract
In recent years, the issue of local government debt in China has grown into a major domestic and international concern, becoming a focus for research at the theoretical and policy-making levels. In fact, the proposal to grant debt autonomy to local governments through amendments to the Budget Act was again on the agenda at the end of 2011. In the long run, allowing local governments to issue bonds, similar to the municipal bonds in the Western market economy countries, is consistent with the direction of the fiscal, taxation, and financial systems. The significance of this issue will be analyzed in this article.
In recent years, the issue of local government debt in China has grown into a major domestic and international concern, becoming a focus for research at the theoretical and policy-making levels. In fact, the proposal to grant debt autonomy to local governments through amendments to the Budget Act was again on the agenda at the end of 2011. In the long run, allowing local governments to issue bonds, similar to the municipal bonds in the Western market economy countries, is consistent with the direction of the fiscal, taxation, and financial systems. The significance of this issue will be analyzed in this article.
Contents
I. THE FISCAL SIGNIFICANCE OF ISSUING BONDS BY LOCAL GOVERNMENTSII. THE FINANCIAL SIGNIFICANCE OF ISSUING BONDS BY LOCAL GOVERNMENTS Skip to top