To strengthen local government debt management, we should not only find out the debt family, but also further strengthen debt management from the mechanism and system, bring local government financing and debt repayment into the legal track, and effectively prevent local government debt crisis. Below, the author mainly talks about some ideas of strengthening local government debt management from four aspects: debt budget management, debt management institutions, risk early warning and debt repayment. First, establish a comprehensive debt budget mechanism. Government debt is one of the important sources of government revenue. Debt revenue and expenditure should be included in the unified management of the financial budget and reported to the people's congress at the same level for approval, which is conducive to the classification and inventory of projects and makes the government pay attention to previously unknown debt risks. Two points should be paid attention to in the comprehensive management of debt budget. First, strengthen the management of debt plan. Local finance formulates the borrowing plan of the government at the corresponding level every year, and implements hard budget constraints to make it borrow according to this plan; The central government implements planned management of local government bonds and stipulates the subscription scale and specific use of debt funds. The second is strict borrowing authority. There are four restrictions on creditor's rights. First, there are restrictions on loan procedures. Before borrowing money, procedures such as franchising or approval, registration, voting and authorization must be performed. For example, some are approved by the central government, some by government departments and some by local governments. Short-term loans are approved by the main leaders of local governments, and long-term loans are approved by local people's congresses; Second, the form of borrowing is limited. Local governments usually take bonds and bank loans as the main borrowing forms, and the central government directly or indirectly provides long-term loans to local governments. Third, the scale and duration of the loan are limited. The scale of borrowing is mainly determined by the higher-level government, or a fixed upper limit is set, and the scale of borrowing by local governments is limited by the upper limit of debt tolerance. The loan period of the local government is within the benefit period of the debt investment project; Fourth, restrictions on the use of loans, except for short-term loans with insufficient fiscal revenue due to seasonal fluctuations, local government loans can only be used for basic and public welfare capital projects, and cannot be used to make up for the recurrent budget gap of local governments. Second, set up a special debt management agency. The Treasury Department of the Ministry of Finance has a "Debt Management Center" with branches in various provinces and cities, which is responsible for the daily supervision and management of government debt revenue and expenditure at all levels to ensure that government debts at all levels can be repaid in time and fulfill their obligations. The first is to manage bond issuance and bank loans. The Debt Management Center of the Ministry of Finance evaluates whether local governments at all levels are qualified to issue local bonds, and debt management institutions at all levels closely monitor the increment and stock scale of local government bonds, the flow of debt issuance funds, and debt repayment. The debt management center examines the scale of bank loans through demand control and supply control. Demand control is also the control of borrowers. Relevant indicators mainly include government budget revenue, budget net income after deducting personnel expenses, budget expenditure, etc. It is stipulated that the debt balance of provincial and local governments can be a multiple of their net income, and no new debt is allowed if it exceeds it. Supply control is mainly to control banks and other non-bank financial institutions that provide loans, and establish a set of laws and regulations to manage the risks of loans and guarantees, stipulating that banks should also share the risks, that is, at least bear 15% of the net losses related to any default. The second is to manage financing institutions. At present, local governments generally have a wide variety of financing platforms, and most of them rely on government credit or public resources (such as land and minerals) as collateral to carry out a large number of financing in the name of enterprise legal persons. Debt management institutions should strengthen the combing and supervision of financing on these platforms. It is necessary to gradually eliminate those platforms that do not have borrowing conditions and support those financing platforms that do, especially some prefecture-level city investment companies to go public for financing; At the same time, it is necessary to carry out follow-up supervision on government financing platform investment projects, prevent debt funds from being misappropriated, promote the full play of debt funds, and ensure that projects are completed on time and with high quality. Third, establish a scientific and efficient early warning system. Debt risk early warning is the core system of debt risk control, which has two modes: risk assessment and early warning. The first is to evaluate the relationship between local government debt and financial situation. Provincial audit institutions measure the debt risk level of local governments below the provincial level by three financial indicators: debt ratio (the proportion of debt balance to GDP), debt ratio (the proportion of debt balance to available financial resources in the current year) and available financial resources in the current year, that is, disposable funds inside and outside the budget (excluding the normal operation funds of administrative institutions), and local governments with high risks are included in the "early warning list" for monitoring; If the circumstances are serious, they will be listed in the "crisis list", and the "Financial Planning Supervision Committee" specially established by each province will monitor and urge to resolve the crisis within the prescribed time limit. The second is to evaluate the relationship between local government debt and solvency. Judging whether the local government is in the "red light district" or "green light district" by the interest expenditure rate (the ratio of interest expenditure to available financial resources in the current year) and the debt rate. If the debt interest expense ratio is less than 40% and the debt ratio is less than 80%, it means that local governments are in the green light zone and are allowed to borrow. Otherwise, it means that local governments are in the red light district, and local governments entering the "red light district" are strictly forbidden to borrow new debts. A flexible and sound government debt repayment mechanism is an effective means to prevent the influence of debt risk on local normal financial operation. First, establish a debt service account system, set up a debt service account in the financial department to repay government debts, and the financial department that repays debts with budgetary funds will directly allocate debt service funds to the account according to the planned repayment schedule; Treasury bonds and loans from international financial organizations transferred by finance require users to transfer debt repayment funds into debt repayment accounts, which will be returned by the financial department. The second is to establish a debt service reserve system. When the local government can't repay the due debts, it can pay from the debt service reserve first, and establish a debt service reserve at the rate of 10% of the bond issuance, which can be used to invest in low-risk central government-backed bonds, and the investment period can not be longer than the remaining period of the bonds; The central bank is the manager of the reserve, and makes the fund raising plan according to the plan of the central financial department. The third is to establish a system of restructuring local government debts by the central government. In the event of a debt crisis, the central government can take over local government debt, specifically, the central government issues central bonds, reconfirms local government debt, and becomes a creditor of provincial and local (municipal) governments. The central government takes over the local government's own income, including tax sharing, as a guarantee, and requires to pay 15% of the provincial and local recurrent net income every month to ensure the effective resolution of the debt crisis.