Discussion On The Development Mode For China’s Local Government Financing Platform

Since the inception of local government financing platform, the controversy overthe pros and cons and risk around which has never stopped. Especially after theGlobal Economic Crisis in2008, the central government launched4trillion tostimulate economy and the problem of the local government financing platform hasdrawn the public attention. With the overheated economic growth and the complexinternational environment, the central government has issued many laws and documentin order to help the local government financing platform develop in the healthy way. Atthe same time, the Audit Commission also carried out an investigation throughthree-months. On the analysis of fund’s sources and application, this paper aims todiscover the problem in the process of the operation of the local government financingplatform and put forward the rational policy recommendations. Considering of eachsubject related of the local government debt, resolve and regulate the various risks thatmay arise. There are great theoretical and practical significance on improvegovernment functions, establish the risk early warning mechanism and optimize theallocation of resources to provide better public services.