Research On The Local Government Financing Platform And The Risks Related

Since 90s,20th century, along with China’s rapid economic development and theacceleration of urbanization advancement, some local government investing and financing platforms have appeared, for breaking through the bottleneck of Infrastructure constructionfinancing and law barriers that the State prohibits local government financing.Especially from the lth quarter of 2009, for meeting the international financial turmoil, local government investing and financing platforms have increased in a "rolling snowball" fashion.When preventing the economy slowing down too quickly, It also led to a highegree of attention and concern of all parties,for it could precipitate debt risks and associated fiscal and financial risks. debt risk monitoring.This article completely and systematically elaborates the overall operation of the investing and financing platform which responses to the question thaf’the investing and financing platform is what".Based on this,we reveal problems in operation and risks that may arise:financing problems of platforms and systemic risks further increase, exacerbating imbalance between investment and consumption,affecting the inefficiency of financial resources,increasing the systemic financial risk,local finance accumulates recessive risk having intensified the investment impulse of local government,the risk of information asymmetry between goverments and banks is difficult to remove. Local government has taken strict control measures to this problems and potential risks.The recent introduction of credit crunch has caused a great impact on the investing and finacing platfom.By analysis of a large number of cases and data, using the basic principles of public and investment econonmics,from the perspective of strengthening risk management,debt management and credit management, how to regulate the operations of local government financing platform and local government loaning behavior,prevent and resolve systemic risk that may arise,putting forward directional and maneuverable recommendations.Firstly, to promote the standardized operation of local government investing and financing platform, clearly define the responsibility of local governments and business platform and promote the market-oriented reformaton.Secondly,with the change and development of economic situation,to gradually prevent or defuse risks that the local government financing platform may arise,but should pay attention to prevent overkill. Thirdly, promote the further reformation of the tax system, increase the revenue of local goernment. Fourthly, to rationally determine the local infrastructure construction plan and to provide a clear debt guarantee. Fourthly, to promote scientific management of government debt. Fifthly,to set up the responsibility mechanism of local government investing and financing.t Finally,to prevent the irregular financing behavior of local government. It is full of great theoretical and practical significance,for the promotion of investment and financing systems,improving the financial system and debt management system,further transforming government functions and making the government decision-making more scientific,democratic and legal.