In the first half of 2020，affected by the impact of the epidemic situation，China’s economic downward pressure increased. In order to support the resumption of work and key projects，a greatly increasing issue scale of local government bonds occurred in Shandong. Among them，the issuing scale of special bonds for project income of local governments in Shandong was far more than that of last year，ranking the second in the country，and the scale of capital construction investment was relatively large. The overall debt level of Shandong was in the front of China. However，in terms of its economic and financial volume，the debt ratio was relatively reasonable. Meanwhile，the government strengthened constantly debt management，so that the debt risk is basically under control. This report will analyze the development of local government bonds in Shandong from three aspects：the operation of local government bonds，the simulation of the effect brought by the issuance of the special bonds of project income and the solvency of Shandong.