First of all, local governments should withdraw from the competitive field as soon as possible. According to the requirements of market economy, the government's function should be mainly limited to being the referee of market competition, maintaining market order fairly, openly and justly, making up for the defects of market mechanism itself and providing public goods and services. Generally speaking, the government will not interfere in areas where the market mechanism can play an effective role. Therefore, as far as the competitive field is concerned, the dominant mechanism for allocating resources should be the market mechanism. In fact, for local governments, especially city and county governments, not only their industries are mostly in competitive fields, but also most of these enterprises are small enterprises. According to the state's big policy of strategic restructuring of state-owned enterprises, it should also be liberalized. It should be noted that at present, China's economy is in recession, and local state-owned enterprises are suffering from increasingly serious losses under strong competitive pressure, and the resulting loss subsidies are also increasing. Therefore, the best time has come to transform the functions of local governments and realize the separation of government and enterprise. In fact, many local governments have voluntarily or forcibly started the process of privatization of state-owned enterprises.
Second, the economic behavior of local governments should change from "substitute market" to "service market" as soon as possible. With the formation of regional market, the excessive substitution of market mechanism by local governments will only weaken the stamina of local economic development. Therefore, in the future, local governments should improve all kinds of software necessary for the normal operation of the market while doing a good job in the hardware construction of various markets. For example, establish and improve various market trading rules, maintain fair market trading and fair competition order, and protect the property rights of market participants; Cultivate all kinds of industry management organizations and market intermediary organizations, give full play to their functions of service, supervision and management in the market, and communicate with enterprises, markets and governments, so as to create conditions for the government to return its rights to the market. When cultivating intermediary organizations, we should ensure the independence of their non-governmental organizations and avoid cultivating them into "quasi-government institutions" as a new means of government's non-standard market intervention; Support and guide the innovation of various forms of circulation organization, and change the situation of low degree of market organization and blocked market transaction expansion.
Second, improve the financial system and rationally divide the scope of financial power and power.
First, it is necessary to further clarify the division of powers between the central and local governments at all levels. What should be borne by the central government is clearly borne by the central government in terms of the division of responsibilities. Governments at all levels should follow the principle of "whoever gives policies pays" and change the situation of "the central government gives policies and the local governments give funds". In most countries, the division of powers and financial rights of governments at all levels is clearly defined by the Constitution and laws, which clarifies the responsibilities of governments at all levels and avoids unnecessary improper means of shifting funds. In strengthening local government debt management, China should learn from this experience, improve the budget law and transfer payment regulations, clarify the administrative and financial rights of governments at all levels in the form of legislation, harden budget constraints, standardize government borrowing and guarantee behavior, and strengthen the legal management of local debt. It should be noted that further clarifying and rationally dividing the scope of powers and responsibilities between the central government and local governments, and between local governments at all levels, including debt liability, can not only promote the unification of financial rights and affairs among governments at all levels, but also reduce the "infringement" behavior among governments at all levels, enhance the debt-paying awareness of local governments at all levels, prevent the scale of local government debts from getting out of control, and create conditions for standardizing the debt-borrowing behavior of local governments at all levels.
The second is to improve the local tax system and continuously increase the proportion of local tax revenue in fiscal revenue. The fiscal revenue of local governments can't meet the needs of local fiscal expenditure, which is an important reason for local governments to borrow money. Therefore, in order to prevent the accumulation of new unreasonable local debts, we should ensure that local governments can ensure their normal expenditure needs through normal and standardized income sources. To increase local fiscal revenue, we must improve the local tax system, and the specific measures are as follows: First, levy real estate tax. Business tax is the financial pillar at the provincial level, and property tax is the financial pillar at the city and county levels. Real estate tax is the most suitable tax for local governments. This kind of real estate tax can form a very stable tax source. As long as the local government wholeheartedly optimizes the investment environment, the real estate on its own land will continue to appreciate, the tax base will be reassessed every 3-5 years, and the financial resources of local governments will continue to expand with the improvement of the investment environment. The focus of local government functions coincides with the cultivation of its financial resources, which just adapts to the policy orientation of the adjustment of government functions and financial functions. Under the condition of market economy, local governments should pay attention to optimizing the investment environment, improving the prosperity of their regions, constantly appreciating real estate, and expanding their own tax sources, thus forming a stable and large source of fiscal revenue. Second, give local governments certain tax legislative power. Local governments can levy new taxes on tax sources with local regional characteristics according to the actual situation in the region, so as to increase tax revenue.
The third is to increase general transfer payments. The central, provincial and municipal governments should increase the general transfer payment. From the perspective of economics, the current lack of county and township finance is the price that must be paid in the process of deepening the development of China's market economy and adjusting and optimizing the economic structure, which is conducive to the long-term development of the national economy and national finance. Therefore, in this process, it is not only necessary but also absolutely necessary for the superior finance to give necessary support. After the reform of taxes and fees, the financial gap in poverty-stricken areas has further increased, the scale of fiscal revenue at the township level has shrunk, and the problem of wage arrears has become prominent. The wages and public funds of township personnel are urgently needed to be solved by standardized transfer payment from higher authorities. It is suggested that the central government should consider the actual difficulties in poor areas, increase the transfer payment and give preferential treatment to the funds. On this basis, cities under provincial jurisdiction and cities with conditions should also actively find ways to come up with certain funds and give appropriate subsidies through transfer payments.
Third, strengthen local government debt risk management.
1, improve the local government debt management system.
First, centralized management of government debt. The financial department should shoulder the responsibility of unified management of local government debts, improve the current situation of multi-head management, compartmentalization and unclear rights and responsibilities of government debts, and strengthen supervision over various departments and debts. Its debt management responsibilities mainly include: making long-term and annual plans for government debt and controlling the overall scale of local government debt; Adjust and optimize the government debt structure and debt types, and reduce debt risks and financing costs; Unified collection and dispatch of debt repayment funds to ensure the repayment ability of government debts; Supervise the use of debt funds of various departments.
The second is to unify the decision-making power of local government debt. At present, local people's congresses are generally unable to substantially examine and supervise government debt, so the decision-making power of direct explicit debt should be controlled in the hands of the government. Various functional departments of the government can apply for borrowing debts, explaining clearly the purpose of debts and the feasibility of implementing projects, but the final decision on whether to borrow debts should belong to the government. Only in this way can we control the total debt from the source and put an end to the phenomenon of multi-head debt.
The third is to establish a government debt management system. First, establish a debt management system that combines "borrowing and returning" with "consistent powers and responsibilities"; The second is to establish a debt evaluation system to evaluate and demonstrate the scale, project, cost and repayment channel of debt to avoid blindness and randomness; The third is to establish a debt repayment responsibility system and accountability system. For the use and repayment of debts, a letter of responsibility should be signed to clarify rights, obligations and responsibilities. Those who blindly borrow money and engage in low-level redundant construction, resulting in losses and waste, or dereliction of duty, should be held directly responsible. At the same time, the borrowing, use and repayment of debts should be included in the scope of economic responsibility audit of leading cadres during their term of office as an index for evaluation, assessment and appointment of cadres.
The fourth is to unify the statistics and reporting caliber of local government debts. The central and provincial governments should study and determine the statistics and reporting caliber of local debts as soon as possible, clarify the classification of debts, and take measures to force lower-level governments to report debts. Only on the basis of scientific classification and true statistics can we accurately evaluate the debt situation and prevent and resolve the debt risk in time.
2. Scientifically regulate the scale of local government debt.
Contradictions and problems existing in local government debts have accumulated for a long time, so they can only be rectified in Xu Tu, and it is not appropriate to take a "sudden braking" solution, so as not to trigger social shocks and affect the sustainable development of the economy. As far as the central government is concerned, it is necessary to strengthen the supervision and inspection of local government debts, urge local governments to clean up hidden debts in the past, and strictly implement the regulations that local governments are not allowed to borrow or borrow in disguise, and are not allowed to guarantee debts for enterprises. In view of the position of central lending debt in the composition of local government debt, the central government should also focus on regulating the regional structure of lending when arranging lending funds, taking into account not only the lending reputation of the region, but also its constructive comprehensive financial level, total debt scale and comprehensive solvency. For areas with heavy debt burden, we should strictly control the newly-increased lending debt to avoid the situation of excessive debt burden in some areas. To solve the problem of local government debt, especially illegal borrowing, we should focus on counties and townships, "brake first, then reduce the swelling" and curb the excessive growth of government debt. At the same time, actively advocate the administrative concept of "debt reduction is also a political achievement", and urge all localities to strictly implement the regulations that local governments are not allowed to borrow or borrow in disguise, and are not allowed to guarantee debts for enterprises. On the basis of existing laws and regulations, various measures, such as increasing revenue and reducing expenditure, clearing creditor's rights, and reducing debts, will be gradually promoted and implemented year by year to vigorously digest the huge government debts accumulated for a long time.
3. Establish a local government debt service fund.
A responsible and reputable local government usually has to work hard to repay its debts in three aspects. The first is to enhance the repayment responsibility and ability of the project unit. Most government debt projects mainly reflect long-term and social benefits, but some projects have certain economic benefits after they are completed and put into operation, and part of the proceeds will be used to pay off debts. The second is to reduce the budget expenditure of relevant departments and squeeze out financial resources for debt repayment. In a sense, the use of debt is to arrange future expenditures in advance, so future expenditures should be compressed. Under normal circumstances, the project expenditure budget in the budget of relevant departments should be adjusted, and its basic expenditure budget should be guaranteed. The third is to increase fiscal revenue, increase fund pooling and enhance solvency. At the same time, when preparing the budget, the debt repayment needs of various government debts are comprehensively considered. Establishing sinking fund is a necessary measure to ensure the credibility of the government and the sustainable development of finance. The financial departments at all levels shall, according to the needs of the local area, determine the amount of debt service reserve to be raised each year, and at least ensure the risk reserve required for repaying the principal and interest of the current year. The main sources of funds for sinking fund are: financial departments at all levels arrange part of the budget according to needs; Income generated after the completion of debt projects; Government funds included in budget management; The part of extra-budgetary funds used for related construction; Debt fund deposit interest net income and so on. The main purpose of the sinking fund is to advance the debt projects that have not yet produced benefits or the debts that the lower level government is temporarily unable to repay. The second is to repay the debts that cannot be repaid due to irresistible reasons such as natural disasters, and the debtors at the same level are unable to repay. The third is to repay the debts that have been included in the repayment plan of the fiscal budget at the corresponding level. The sinking fund is established and managed by the financial department, and is subject to audit supervision. When the sinking fund is used to advance the debts that should be repaid, the debtor at the next level must sign a loan agreement with the financial department and make a feasible repayment plan. Sinking fund into the financial department at the same level budget accounting, the implementation of account management.