Local Debt Is Included In Performance Appraisal

< p > "notice" requires that we strengthen the examination of the state of the government's debts, take the a href= "//www.sjfzxm.com/" > government < /a > liabilities as an important indicator of performance appraisal, and strengthen the examination, audit and accountability of the debt situation during the term of office, so as not to rush to success, and blindly borrow money to carry out "achievements project".

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< p > it is understood that policymakers are planning to control and control local debt with multiple heads. Local debt assessment is only one of them. In addition, the establishment of a local government debt management and risk warning mechanism, as well as the preparation of national and local balance sheets, and the establishment of local debt markets, are all in the process.

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Wang Yongjun, Dean of the Institute of Finance and economics of Central University of Finance and Economics, told the daily economic news reporter that "the general direction of the future local debt management is to strengthen the market's restraint on local governments, while not relaxing the central government's control of the place. At the same time, we must establish a set of binding debt decision-making procedures on the P".

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< p > < strong > different caliber causes data difference < /strong > < /p >.

< p > the audit of local government debt since the beginning of August this year, the audit result has not yet been announced.

The daily economic news reporter learned that the two main sectors of the local debt calculation are the Ministry of Finance and the audit office.

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< p > Wang Yongjun introduced that the data of the Ministry of Finance and the data of the Audit Commission were not very simple, because the statistical methods of the Ministry of finance were reported up to the first level, while the Audit Commission was a single audit. "There are differences between the real and objective aspects, and no one can judge more or less."

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At present, the Audit Commission has announced the scale of local debt many times. The data released earlier showed that the debt of local governments was 3 trillion and 200 billion yuan at the end of 2008. In 2010, local debt increased sharply to 10 trillion and 700 billion yuan, of which 46.38% came from the local financing platform and the largest borrower.

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< p > on the other hand, at the beginning of 2010, the Ministry of finance began to work on the statistics of local government debt. At that time, the Ministry of Finance jointly issued the notice on the verification and verification of the financing platform debt with the NDRC, the central bank and the CBRC, and deployed the local government to conduct a comprehensive clearance and verification of the debt of the financing platform company.

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< p > as of December 2010, all provinces (autonomous regions and municipalities) have reported the clean-up and verification data of the debt of the financing platform company. At that time, the Ministry of Finance got two sets of data, which were provided by the < a href= "//www.sjfzxm.com/" > the economic < /a > Construction division and the budget division.

Among them, the budget department's data come from the budget of the local government budget, which mainly includes the budget department's registration survey of explicit debt and direct liabilities; the data of the economic construction department comes from all kinds of government investment and financing platforms, including investment and financing platform, enterprise guarantee, etc.

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< p > fiscal and tax experts speculate that the statistical results of the Audit Commission may be communicating with other departments because of different statistics.

For the specific data, the two sector will reconciliate the accounts again.

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< p > < strong > the decision-making level is concerned about the local debt < /strong > /p >

< p > although the latest debt data has not been released, the high scale of local government debt has attracted the attention of policymakers.

The notice issued by the Ministry of the Central Committee of the CPC Central Committee said that we should strengthen the assessment of the government's debt situation, take government debt as an important indicator of performance appraisal, and strengthen the examination, audit and accountability of the debt situation during the term of office, so as to prevent the rush to succeed and blindly borrow money to carry out "achievements project".

This is seen as the latest move to control local debt.

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< p > Wang Yongjun said that many of the local debts were left behind by the outgoing officials. "New officials ignore old debts", and now they should be held accountable for their responsibilities.

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The decision of the Central Committee of the Communist Party of China on a number of major issues concerning the comprehensive deepening of reform adopted by < p > a href= "//www.sjfzxm.com/" > the third Plenary Session of the 18th CPC Central Committee > /a pointed out that it is necessary to establish a standardized and reasonable debt management and risk warning mechanism for the central and local governments, "the compilation of the national and local balance sheets, and the establishment of the comprehensive financial reporting system of accrual basis", which will provide technical support for the gradual solution of the management of local debt.

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< p > in the compilation of balance sheet, Hainan, Gansu, Shanghai, Guangdong and Shenzhen have started to compile the government balance sheet.

For local governments, finding out their assets and establishing balance sheets can effectively prevent operational risks.

At the same time, the relevant ministries and commissions have also investigated the local financial ecology to prepare for the establishment of credit rating for local governments.

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"P > strong > /strong >" Wang Yongjun said that the method of controlling local debt now is a method of total amount and incremental control. "The central government sets the stock of the whole debt and the total increment of the debt, and controls the local debt, but now many places have various recessive ways to increase debt. The central government needs to establish an early warning mechanism. If the reform is in place, the bond market and local governments can control it."

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< p > in fact, since 2011, the State Council has approved the pilot projects of local governments issuing bonds voluntarily in Shanghai, Zhejiang, Guangdong and Shenzhen.

This is a pitional form between the central agency issue and the fully independent issue.

But in the view of institutions, this kind of bond is not only small in scale, but also important in terms of short duration, only 3 years, and it is not allowed to extend the period. It does not apply to the construction of public welfare infrastructure projects.

To this end, the industry appealed to learn from the experience of American local government financing, allowing local governments to issue municipal bonds themselves.

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Li Yang, chief analyst of the P trust, said in an interview with the daily economic news that if the cost of financing in the trust channel is relatively high, it is better to issue bonds on its own. In the future, local bonds should establish bond market and trading channels like corporate bonds.

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< p > Wang Yongjun thinks that the mature bond market needs time and conditions, so it can only be based on the approval system. As long as the local government strictly follows the procedures in the debt decision making, the NPC will play a role in the budget link, and set up the bottom line, scope of use and reimbursement to the local bond issuing according to the conventional budgetary procedure. This is in itself the establishment of accountability in the budget, and the central government is not in need of too much debt.

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Zhao Quanhou, director of the Financial Research Office of the Ministry of finance of the Ministry of finance, said that solving the local debt problem is a long-term systematic project. In the short term, it can start from the establishment of a long-term capital management company to promote the standardization, pparency and establishment of the national balance sheet of local financing, so as to promote the solution of the local government debt problem. P

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