What are the ways to solve the debt crisis?

There is only one way to solve the debt crisis, and that is fiscal and tax reform. The emergence of debt crisis itself is the contradiction between public service demand and government revenue. It is impossible to reduce the demand for public services. We can only reform the tax mechanism and increase government revenue.

So for the debt crisis, if we want to solve it, I think we can start from the following aspects:

Implement more flexible economic policies

China has a vast territory, and the development of different regions is extremely uneven. The governance effect of the central unified policy varies greatly in different regions. Therefore, in order to realize the relatively universal and balanced development of local economy, the central government should delegate more decision-making power for long-term social and economic development, so that different regions and regions can formulate long-term strategies suitable for local level, even including different tax policies.

Clarify and clarify the powers and responsibilities of the central government and local governments, so that local governments have greater decision-making power, administrative autonomy and financial power.

In today's China, local finance has a great responsibility. Almost all public services are provided, and its budget expenditure accounts for 55%. However, the local government budget in developing countries only accounts for 13% of the total budget expenditure, while that in developed countries is only 35%. The lack of financial resources makes the public services provided by local governments pitiful.

In the case of tight fiscal revenue and expenditure, under the rigid official performance evaluation mechanism, medium and long-term local economic development projects are often ignored. The fastest and most profitable land finance has become the best choice for local governments at all levels. Therefore, in order to change this situation, the central government should delegate power to local governments instead of collecting power.

transform government functions

The government completely withdrew from the field of market competition; Standardize, improve and perfect the market economic system; Actively promote the strategy of "entering the people and withdrawing from the country". What does the debt depend on? It is necessary to straighten out the market mechanism and establish a good economic environment for sustainable development, rather than relying on "land finance" to kill the goose and get the egg.

To establish a good economic environment for sustainable development, the only way is to change government functions and completely withdraw from the field of market competition; Standardize, improve and perfect the market economic system; Actively promoting the strategy of "putting the people before the country" ... is the only way

Summary:

The key to the debt crisis is not "poor money", but that the central and local governments are still conservative in the operation of funds, lacking the courage and courage to try their best to absorb private capital and foreign capital, which are huge figures and can completely help the central and local governments.