Problems and Thoughts of Issuing Municipal Bond to Fiscal Revenue

Abstract

Since the declaration of new Budget Law makes issuing municipal bond possible, many local governments deem it as an important way to get fiscal revenue. There is no doubt that issuing municipal bond along with tax revenue, nontax revenue and transfer revenue has become a significant source of fiscal revenue. However, it also brings local government heavy financial burden, backward areas especially. Few new bonds were used to carry out regional construction. And the rest of them usually were issued for the paybacks of former loans. This paper is aimed to analyze the influence of issuing Municipal bond to fiscal revenue and the problems and get the conclusions.