Abstract: Special bonds are an important tool for counter cyclical regulation, which can effectively broaden government financing channels, expand effective investment, and promote local economic development. The operation of special bonds should prevent and control debt risks caused by confusion of responsibilities and ineffective governance. The Third Plenary Session of the 20th Central Committee of the Communist Party of China called for the improvement of the government debt management system. Special bonds should be managed with a coordinated approach to development and safety, emphasizing the responsibility implications of dividing responsibilities, regulating rights with responsibilities, and promoting governance with responsibilities. At present, there are some problems in the governance of special bonds, such as unclear responsibility for debt repayment, too light responsibility for internal debt default, and inadequate responsibility for project supervision. The governance of special bonds needs to shift from a power based to a responsibility based governance logic, its governance efficiency improvement must return to compliance with the underlying logic of borrowing, and harden constraints in safeguarding creditors’ rights and reinforcing democratic supervision. Under this guidance, all levels of government implement an accountability system: clarify the role of municipal and county governments in assuming debt repayment responsibilities and provincial governments in performing guidance and supervision responsibilities, implement a dynamic supervision and response mechanism, and strengthen accountability for violations through technology. At the same time, collaborative governance should be carried out at the social level. The“gatekeeper”responsibility of professional institutions should be strengthened with the aim of protecting investors, and the public’s social supervision role should be leveraged through the investigation system of the National People’s Congress. Only in this way can local governments establish debt management mechanisms that are compatible with high-quality development, and effectively enhance the governance system and capacity of special bonds.

Key words: local government debt, special bond governance, special bond risk, responsibility implication, accountability system