Study On Operation Strategies Of Local Government Investment And Financing Platform

After the tax system reform in1994, the local government financial contracting, powerincrease, but also in the GDP record of achievement in one’s post, local officials promotionsituation, local government financing platform sadly arisen, and gradually formed in thecity investment company consisting mainly of architecture, the1998Asian financial crisis,the central government increase financial input, local government with the acceleration ofproject investment, accelerating the popularization of the city investment company, in2008the global economic crisis, the central government determined to implement4trillioninvestment plan, accelerate the project approval project approving start,$4in the centralgovernment only invested1Wanyuyi, main part by local governments to form a completeset, in this case to meet the local acceleration of financing, local government city for furtherdevelopment and expansion of the company.Can be said that the financing and investing platform of local government is a localgovernment to bypass the " budget law " undertake massive financing innovation andconvenient way for the local government, the municipal construction and economicdevelopment has made an indelible contribution. However, the central government localgovernment acquiescence, unchecked development investment and financing platform,many problems are exposed gradually come out, for example: local city investmentcompany management is too confused, overburdened with debt, debt risk and so on, aseries of problem finally attracted national attention, the data show in2009, the localgovernment the city investment company debt is already more than a trillion, and alsoshowing explosive growth, but the city investment company representative governmentfinancing and investment, a large part of the burden of debt is guaranteed by governmentfinance, place had limited financial resources, but the city investment company is in debt,be triggered at any moment of crisis.In2008the global economic crisis has far-reaching influence, plus the European debtsovereign crisis, today, the world economy is a dismal, China’s consumption is depressed,mostly depending on the government investment to boost the economy, save theunemployment rate. In this case, the local city investment company cannot cancel in theround, central attitude clear, since2009, many times below, hope to accelerate the pace ofreform city investment company, normative city investment company financing andinvestment way, the modern enterprise system, adopt the corporate governance structure. This paper makes a systematic exposition of the city investment company development,operation mode and current situation, and from the Hunan province Xiangtan cityinvestment company case sets out, point out the existing problems and the implementationstrategy, hope this paper can be on the city for the healthy development of the company togive certain guidance and reference, boosting local economy stable and healthydevelopment.