Government implicit debt usually includes the government's guarantee or support for enterprises or financial institutions, welfare expenditures of government employees such as pensions and medical subsidies, and the government's commitment to land revenue and resource use rights. Since these responsibilities are usually not included in the government's financial statements, the government may not be fully aware of the potential risks and impacts of these responsibilities on public finances.
The existence of government implicit debt may increase the risk of government financial stability and sustainability, especially how to evaluate and deal with the problem of government implicit debt has always been an urgent problem to be discussed and solved. The government should strengthen the monitoring and management of implicit debt, improve transparency and ensure the sustainability and stability of public finance. In addition, strengthening the risk assessment and early warning mechanism, establishing and perfecting the financial system and norms are also important measures to deal with the hidden debt problem of the government.
What is the difference between government debt and implicit debt?
1, different definitions: government debt refers to the government debt generated by the government issuing bonds at home and abroad or lending to foreign governments and banks. Implicit debt refers to the debt that employees do not participate in endowment insurance and the pension is promised by the state during the planned economy period.
2. Different forms: government debt exists in the form of bonds or loans. Implicit debt is the repayment of personal pension by the state.
3. Different functions: Government debt is divided into central government debt and local government debt. Implicit debt mainly includes "old people" implicit debt and "middle people" implicit debt.