Issues Concerning the Issuing of Local Government Bonds in China

Abstract

Although local government is not allowed to raise loan by themselves, there are a lot of debts raised by local government agencies in the name of decentralization of financing. So whether local government has the right to issue their bonds is a question that should be addressed immediately. In our country, we think, there exist the theoretic basis and practical conditions of issuing local government bonds. Allowing local government to issue bonds is inevitable to expand local government's debt and is the necessary step towards perfecting our country's fiscal system.