Local Government Balance Sheet
In the past two years, local government debt has attracted continuous attention of people from all walks of life. Particularly, the amendments to the Budget Law, and the Opinions of the State Council on Strengthening Management of Local Government Debt (No. 43) issued in the second half of 2014 have outlined the new structure of the local government debt management system. On this basis, the Reviewing and Screening Measures for Placing the Outstanding Debts of Local Governments under Budgetary Management was issued, and two local government debt swap programs each amounting to RMB1 trillion were launched in the first half of 2015. In such case, we need to re-assess the risks of local debts and analyze and investigate some new trends. Therefore, in this chapter we have tentatively prepared the local balance sheet of 2012–2014 using new data and improved methods, assessed the main risks posed by local government debt based on the results of two rounds of comprehensive audit of local government debt conducted by National Audit Office and analyzed several key issues on preventing local government debt risks.