Research on the Causes, Risks, and Countermeasures of Local Debt Problems

This study aims to explore the causes, risks, and corresponding risk response strategies of local government debt problems. In the case analysis, the scale of local debt in Ningbo is taken as the specific research object. Although local governments use debt financing for infrastructure construction to promote economic growth in the short term, it also brings potential debt risks. By analyzing the scale of local debt and governance policies in Ningbo, this paper finds that Ningbo is relatively reasonable in debt management and its debt risks are generally controllable. Ningbo has successfully promoted municipal construction and economic development by establishing financing platforms and issuing government bonds. Meanwhile, the Ningbo Municipal Government has strengthened debt information disclosure and external rating management and improved the transparency of debt management. The research results provide a reference for other local governments, emphasizing the importance of rationally planning debt structure and controlling debt risks to achieve sustainable development of the regional economy.