Many advanced countries have established debt management mechanisms. Among these, the OECD has implemented spending cuts, corporatized budget mechanisms, and other such fiscal reforms; while the EU has established mid-term and long-term warning mechanisms (stability programs) with good results in debt management. This study identifies a positive correlation between economic growth and fiscal revenue and expenditure, and a negative relationship with accumulated debt balance. Also, empirical findings show that where the government long-term debt ratio is set at 67% in the short to medium term and adjusted to 60% in the long term, it has the greatest effect in stabilizing the debt structure. From examination of Canadian local government fiscal operations, this study finds that the local governments actively increased property tax and fee revenue; met capital expenditures from public utility income and self-financing funds; and set ratios for debt principal to tax revenue and total expenditure, to serve as early-warning indicators for controlling the growth of debt.