Research on the Risk of Local Government Debt in China in the New Era

After the promulgation and implementation of the new Budget Law in 2015, local governments have laws to abide by when it comes to the issue of debt in an independent manner. Focusing on the problem of local government debt risk prevention in our country, this paper analyses the causes of local government debt by means of combing the development process of local government debt in our country and the promulgation and implementation of relevant debt management policy measures. In combination with the specific risk problems encountered in the current debt management, and against the background of the new round financial system reform, this paper analyzes the current situation that largescale tax reduction leads to the reduction of local government’s financial resources and the increase of debt risks, so that this paper puts forward some suggestions on improving the local government debt risk management mechanism in order to maintain the stable economic and social development of China. Keywords—local government debt; risk prevention; debt management; financial system reform