Budget Law Shelved Two Years Retrial Local Debt Or More Detailed Provisions

The revised draft budget law will be reopened next week, which is expected to make more explicit provisions for local governments to borrow money from P.

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The eighth session of the twelve NPC Standing Committee will be held in Beijing in from April 21st to 24th. < p >

The draft amendment to the budget law will be considered at this meeting.

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< p > draft two reviewers were invited to solicit opinions in 7 and August of 2012. 19 thousand people participated in the review, and 330 thousand opinions were collected.

However, the stagnation of the second instance has been suspended for nearly two years. According to the relevant provisions of the "legislative law", if we do not consider this year, we will not consider it invalid. This is also an important reason why the academic circles generally believe that the three trial will be resumed this year.

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< p > < strong > or make a more detailed provision for < a href= "http://www.91se91.com/news/index_c.asp > > local borrowing < /a >" /strong > /p >

How high is the revised draft < p > < strong > a href= > http://www.91se91.com/news/index_c.asp > < /a > > /strong > /p >

< p > in the 60 laws currently collecting opinions, the opinions collected by the budget law are second in number and fourth in the number of participants.

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< p > last year, there was news that the NPC Standing Committee originally planned to draft a draft amendment to the three instance budget law in August last year.

Media reports said that due to the new deployment of the next round of comprehensive reform in the third Plenary Session of the 18th CPC Central Committee, the content needs to be further amended.

But there are also views that the draft of second instance lacks consensus and there are too many differences. Once deliberated, it will have an important impact on the next few decades.

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< p > the twenty-eighth provision of the current budget law stipulates: "local budgets at all levels should be compiled according to the principle of balance between income and expenditure, balance of payments and no deficit.

Except for other provisions of the law and the State Council, local governments shall not issue local government bonds. "

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< p > under the situation of high local debt risk, the thirty-first draft of the draft budget law two reviewers reiterated the above provisions, changed the written expression of a manuscript, and completely returned to the correct state of the existing budget law, which has always been dissatisfied with the academic circles and even the regulatory authorities. It is considered that the two review is a kind of "regression".

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< p > the third Plenary Session of the 18th CPC Central Committee clearly put forward the establishment of a reasonable and reasonable central and local government debt management and risk early warning mechanism, and clearly put forward "allow local governments to expand the financing channels for urban construction through issuing bonds".

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< p > after that, the statement is considered that the three trial of the budget law will unimpede the local government issuing channels from < a href= "http://www.91se91.com/news/index_c.asp" > legal level < /a >.

Jia Kang, member of the National Committee of the Chinese people's Political Consultative Conference and director of the Institute of Fiscal Science of the Ministry of finance, revealed at the national two sessions this year that the revision of the budget law is expected to allow local governments to issue bonds.

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< p > the current budget law does not completely reject local bonds, which stipulates that where the law and the State Council have other provisions, it is allowed to issue bonds locally.

Jia Kang believes that this is actually not the difference between the choice of "Xu Fa", "no hair" and "gate opening and closing". Compared to international comparison, this is the most stringent control mode for local debt. However, the contents of "positive norms" such as control mechanism, issuing body, approval procedure and prevention mechanism have been deleted in the two review.

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Pan Gongsheng, deputy governor of the central bank, also replied to reporters' questions during the two sessions of the National Committee of the people's Republic of China. He said that the relevant laws and regulations in the current budget law had become the resistance of local governments to issuing bonds. He suggested that the central government should gradually cancel the central government's local debt, and the local government would issue bonds on its own.

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Zhu Guangyao, Vice Minister of finance, agrees with P. He said that the central government will gradually withdraw from the central government in the future.

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< p > < strong > local government credit rating to be followed up < /strong > < /p >

< p > after the budget law endows the local governments with the legal right to borrow and make a principled provision, it does not mean that the door of the local government issuing bonds will be opened quickly.

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An authoritative document obtained by reporters during the two sessions shows that at present, regulators are studying "giving local governments appropriate financing rights in accordance with the law" and "making plans for the reform of local government bonds since P", so as to promote reform in some places.

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< p > in addition, while opening up channels for local government financing, it also means pushing local governments to the market, which requires credit rating for local governments. At present, there is news that the research phase of this work has been completed and will be upgraded to the local government credit rating Ordinance.

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< p > the news said that the local government credit rating made by the Ministry of finance is based on the deviation degree and default rate of local government debt. The government information disclosure system is also formulated, which involves the preparation of balance sheets, standardizing the disclosure of information and improving the pparency of information disclosure.

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At the same time, the Ministry of Finance issued a financial performance evaluation plan to the financial departments of all provinces, municipalities directly under the central government and municipalities in the second half of 3. The evaluation of debt management takes the government debt rate, the new debt rate, the debt paying rate and the overdue rate as objects. The plan was officially released to the public on its official website in April 15th. P

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< p > domestic credit rating agencies believe that the higher level government will not be fully responsible for the cash payment of subordinates' government debt, but will bear part of the responsibility.

Therefore, when constructing the local government rating method, we must consider the superior government's support for the cash payment of debt.

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