Research on The Sustainability and Rapid Growth of Local Government Debt

DOI

10.2991/978-94-6239-642-5_36How to use a DOI?

Keywords

Debt Growth; Debt Sustainability; Urgency of Debt Resolution; KMV Model; Asset Securitization

Abstract

As an important source of local government finance, the malignant expansion of debt financing has become a pressing fiscal issue that China must urgently address. Through literature analysis and data comparison, this paper reveals the current state of debt growth and the resulting social problems, providing an in-depth examination of the urgency to curb its malignant expansion. The findings indicate that the sustainability of debt financing faces severe challenges. The paper proposes practical and feasible recommendations for the government to mitigate the excessive growth of debt through financial instruments such as asset securitization and asset leasing, with the aim of maintaining the sustainability of local debt financing and preserving fiscal balance.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhilong Li
AU  - Zijie Wang
AU  - Xiangrong Wang
PY  - 2026
DA  - 2026/04/29
TI  - Research on The Sustainability and Rapid Growth of Local Government Debt
BT  - Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
PB  - Atlantis Press
SP  - 350
EP  - 364
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-642-5_36
DO  - 10.2991/978-94-6239-642-5_36
ID  - Li2026
ER  -