Abstract: Debt leverage ratio ratio and debt sustainability are two important indicators for assessing debt risk. China is currently facing high government debt leverage ratio, high deficit ratio and downward pressure on the economy. Through the decomposition of the calculation method of debt leverage ratio ratio and the analysis of debt sustainability, this paper finds that improving the investment efficiency of government departments will be an effective means to reduce the current debt leverage of government departments; The current international debt ceiling standard is not applicable to China. This paper also further conducts an empirical analysis of China's debt situation by constructing the SVAR model, and finds that changes in the fiscal deficit rate and economic growth rate have a small impact on the debt leverage ratio ratio in the current period, and the impact mainly occurs in the following two to three years. In response to this analysis result, this article proposes corresponding policy recommendations.

Keywords: government debt; Debt sustainability; Leverage ratio ratio; SVAR model;