Government debt financing in china emerged with economic reform, whose purpose is to satisfy theneeds of financing for economic construction. It has the characteristics of state financing in the traditionalsystem. The expansion of the scale of the government debt financing is harmful to the market-orientedreform in financeing system and economic development. From the international experience, the issuing ofgovernment debt can not only satisfy the needs of offsetting deficit budget, but also the needs of theestablishment and perfection of government debt markets. So we must rectify the functions of governmentdebt financing. We argue that the issuing of government debt in china should weaken its financial functionand reinforce its financial market function.
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