(1) The issuance of local bonds institutional basis already exists in our country. China's tax sharing system introduced in 1994, the financial system, although the division of powers between all levels of government and many other areas there are still many problems to be solved, but the initial establishment of the financial system classification has led local governments have a relatively clear-cut power and financial authority, which means that local governments can issue bonds as an economic mainstay of the institutional basis of local government borrowing has been established.