Abstract: With the steady growth of Harbin community economy and expansion of local government debt scale, how to effectively prevent the risk of local government debt to promote the development of local economy, is an urgent problem to be solved. Using PCA method, the paper constructs the index system of Harbin local government debt risk, and carries out early warning analysis, finding the main causes of the risk are local government debt risk is high,fiscal direct project debt is higher, secured debt is uncertain, the increasing recessive debt of local government and low efficiency of debt capital use, the enhancement of debt financing costs, local financial solvency is poor and local debt repayment channels are blocked and so on. Therefore, reducing indebtedness risks to alleviate indebtedness pressure is the basic measure to prevent the risk of local government debt.

Key words: PCA, local government debt, debt risk, risk early warning