In recent years, local governments have adopted the method of debt financing, which has promoted the development of economy and society and accords with the requirements of macro policies. However, with more and more demand of livelihood security and infrastructure, this has aggravated its financial pressure for the limited regional finance. The local government has increased its borrowing scale to meet public demand. The problems of local government debt like huge size, imperfect management, opaque information, inefficient supervision, and incomplete laws increase the risk of local government debt. This paper did a detailed research on the current situation of the local government debt that exceeds a certain limit financial risk, credit risk and efficiency risk.