Assumption For The Government To Establish System Of Usufruct Certificate

Foundation facilities is a basic hardware supporting state economical operation ,which decides developmental level of direct production activities, such as industry, agriculture, business, and so on. Economic growth must be restricted by bottleneck of shortage of foundation facilities in the less developed country in economy. In order to open the bottleneck quickly, the government invests a part of funds concentrated by the public finance into foundation facilities. Because shortage of foundation facilities become a major restricting factor in socioeconomic development of our country, government always pays attention to developing foundation facilities quickly.In 1998 our state practiced positive public finance policy, major of which is that the Ministry of Finance publishes a hundred billion national debts to state-owned commercial bank and , that the bank simultaneously issues a hundred billion loans used for foundation facilities development mainly. Outlay for the central public finance to use for foundation facilities development increased 90.7% in that year, developing a large quantities of foundation facilities item, which plays a positive role in expand of the consumption, promote of the economic growth, and adjustment of investment structure and economic structure in particular.It was proved by practice that the national debt investment has an advantage of other policy means in economic depression, that is, promote the economic growth is direct and powerful ,its time lag short, its effect quick, which can not only extends directly the domestic requirement, but also increases the employment, increases resident income and enterprise profits, stabilizes psychic anticipation of the business enterprise and resident, enhances investment propensity of the business enterprise and consume propensity of resident. By means of national debt between finance and credit,the channel of transforming deposit into investment can be unobstructed, and linkage effect of finance and money policy can be exerted.But along with change horaryly, the negative aspect of national debtinvestment appears increasingly, that is , financial deficit exceeds to danger line, the factor of the backlog public finance risk increases obviously, the space of raising a loan is more and more small, direct interfere the function to economic from the government is strengthen which is departure from target of market reformation, the general investment efficiency in government is worse too, national debt investment is inclined to the low income or no income item gradually, and investment effect of national debt is gradually decrease.The Chinese current public finance system disallows substantially for the local public finance to raise a loan, even disallows to guarantee for the debt with the local government reputation, and, also disallow the local public finance to issue bond to collect the funds from society at the same time. However But it is tacit that the debt undertook with the local government name is more and more unexpectedly.For coping with economic developments, society develops and large finance requirement of people's livelihood and stable, it is inevitably that the all levels of government brings enormous debt problem apparently.Market economy contains two operation conditions: first, the abundant resources provided to deploy; second, the reasonable operation mechanism. Currently financial capacity provided to deploy from central to place is too shortage to provide to society complete public product. When there are no resources or shortage, how extravagantly hopes the reasonable installing resources?Government should mainly research how to utilize business enterprise and social funds well and effectively for foundation facilities developments. I think the most important is to perfect guarantee system of investment equitys. In the area of the foundation facilities developments, to establish "usufruct certificate system" for guarantee investment rights and interests, will play a large role in impelling the government to clean up...