Financial Law Governance Measures for Local Government Debt Risk

Against the backdrop of slowing economic growth and continuous promotion of new urbanization, local governments have continued to increase their debt scale in order to make up for the fiscal revenue and expenditure gap and expand infrastructure investment, leading to increasingly obvious hidden debt risks. Financial law governance plays a crucial role as an important mechanism for achieving a balance between debt development and risk prevention and control through institutional norms and constraints. We should comprehensively build a unified local government debt governance system covering the entire process of "borrowing, using, managing, and repaying" through legal means such as improving the legal system of debt, strengthening the supervision of the entire budget process, promoting the classification and resolution of existing debts, and establishing a market-oriented legal constraint mechanism, in order to effectively prevent systemic financial risks and ensure economic security and fiscal sustainability.