The audit report released at the end of June 2017 once again revealed the relevant problems in China's local government debt management. The National Audit Office randomly inspected the government debt management of 16 provinces, 16 cities, and 14 counties. It found that by the end of March 2017, the balance of debts promised by the governments in these regions to repay with fiscal funds increased by 87% compared with that at the end of June 2013. What's more, some regions still had the problem of illegal borrowing after 2015. The Chinese government has always attached great importance to government debt management. So far, China has established a complete set of local government debt management systems under the framework of the new budget law institution. Since 2015, the level of local government debt has been accurately revealed, and debt risks have been well controlled. The national audit is based on the established various local government debt management systems, audits in accordance with the law, and fully reflects the possible debt risks, which is a manifestation of China's confidence and determination to control government debt risks. Looking forward to the future, the national audit agency should adhere to the "problem orientation", focus on auditing the new situations and new problems that may arise in local government debt, and make new contributions to the continuous improvement of the government debt management system.
