Effect Measurement and System Optimization of Special Debt in Promoting High-Quality Development of Local Economy

The rapid expansion of the scale of special bonds stems from the mode transformation of local finances under continuous pressure. As land finance is unsustainable and hidden debts need to be resolved urgently, special bonds will inevitably bear the important responsibility of maintaining the sustainable development of local finances and stimulating the high-quality development of local economies. It is recommended to re-sort out the development responsibilities of local governments under the framework of fiscal decentralization, give full play to the financing role of special bonds in high-quality development areas such as infrastructure, industry, environmental protection, and people's livelihood, and establish corresponding incentive compatibility and risk control mechanisms to enhance the efficiency of fund utilization and avoid the accumulation of debt risks again.