On protective system of local governmental debts and risks

Budget Law of China makes it clear, that local government is not permitted to issue public debts. However, in recent years, it is a fact that, local governments at various levels to overcome financial difficulties, have borrowed debts in various forms. And it caused serious debt risks to local governments. The protection and solution of debt risks should be done by raising the debt decision makers' risk awareness and deal with it in view of debt scale, debt capital usage and establishing Local Public Debts to let local governments have the law to follow when borrow.