This report will analyze the development of local government bonds in Shandong from three aspects：the operation of local government bonds，the effect brought by the special bonds of project income and the solvency of Shandong，then provide some suggestions for its development of the next stage. With the continuous evolution of COVID-19 epidemic and the increasing downward pressure on the economy，the issuance scale of local government bonds in Shandong has risen rapidly since 2021. The issuance structure is dominated by newly added special bonds and the proportion of short-term bonds is increased. Besides，the project income special bond funds continue to increase. Its investment is skewed towards infrastructure but only a little used as project capital，the actual leveraging result is still limited by many factors. On the whole，Shandong’s local government bonds scale ranks first in China，its financial solvency is strong and the debt risk is under control. Based on the above situation，this report suggests that it is necessary to strengthen debt risk monitoring and properly deal with the peak of local debt maturity in the next stage；at the same time，allocate capital investment effectively，arrange the maturity structure rationally，and make full of the leveraging role of special bonds as project capital；in addition，make the beat of the local debt limitation，diversify capital investment，and innovate the use of special debt actively，promote industrial transformation and upgrading.