Research On Related Issues About Financing Platform Of Local Government In China

In recent years, the term of financing platform of local government is active in the fields of economy, especially at the end of2008, the demand to fund of local government is more urgent after the "4billion " stimulus plan launched by the central. The construction of financing platform of local government is raised rapidly. Generally speaking, financing platform is a project initiated by the local government through the allocation of land, equity, fees, bonds and other assets, in order to make the assets and cash flow of a company up to standard, besides, it will be supplemented by financial subsidies as repayment commitments if necessary and the funds will be put use to municipal construction and utility facilities.1994tax system reform, strengthen the central government financial resources, coupled with the transfer payment system is not perfect, the local government financial weakening, but also bear a lot of public expenditure. Local government financing platform is in the local government demand for funds and local government funding supply matching contradiction arising under the. In our special legal and political system, namely the central government prohibits local government debt financing in the background, at the same time, the local government and the urgent need for substantial capital development, construction of the local infrastructure. In order to solve this problem, various local government began to set up Platform Co. Especially in the international financial crisis, the global economy has brought a heavy blow, world economy enters trough. Our country to cope with the adverse effects of the financial crisis, the implementation of a large-scale investment plan. But in the local government revenue can not be short time rapid increase in cases, the local government only by debt to finance the gap, at the same time, because of the present legal rule " is not allowed to issue local government bond." therefore, local government financing platforms in the number and size of reached a hitherto unknown level, in preventing the economy down too quickly, support economic enterprises warm up at the same time, financing platform of local government finance, the finance risk, also caused the high attention of the parties.This paper introduces the financing platform for a series of related cases, including local government financing platform of connotation, function, characteristics and historical formation after. Based on the platform of local government financing in the description of the status quo, to further explain the financing platform of funding sources, financing ways and means, the use of funds, investment and repayment sources. Accurate analysis of local government financing platforms exist many problems, such as the establishment of chaos, a huge number, run non-standard, vague positioning, low investment efficiency, financing behavior is non-standard wait. The article introduces foreign local government financing mode, and according to the experience combined with China’s national conditions, to local government financing platform construction has obtained the enlightenment. Finally to improve the financing platform of local government financing platform, such as legal person property, financing platform specification, risk prevention and other aspects, and puts forward countermeasures. The thesis on the financing platform of local government on the establishment and perfection of government financing platform of local government capital management system, optimize resource configuration, make local government is better able to provide infrastructure and public products and services, has great theory and realistic meaning.