The Debt Risk of Economic Downward Pressure and Financial Sustainable Development -- Take Liaoning Province as an Example

Abstract

With the normal development of covid-19 and the gradual progress of economic recovery in the middle and late stages of the epidemic, large-scale tax and fee reduction is still the focus of fiscal policy in the "14th Five-Year Plan". However, at present, the increasing downward pressure on the economy and the moderating growth of fiscal revenue have brought about the contradiction between revenue and expenditure, which has a profound impact on the sustainability of China's fiscal development. Based on this background, this paper takes the policy of tax and fee reduction and government debt ratio of Liaoning Province in recent years as the entry point to analyze the current state of government finance and debt operation in Liaoning Province, studies its potential pressure and risks, and suggests that while reducing taxes and fees, it should realize the sound and sustainable development of finance through measures such as "open source and reduce expenditure" and construction of debt risk identification and supervision mechanism.