The Government Investment And Financing Management To Economic Development And Transition

Originated from the end of the19th century and developed rapidly after the World War II, Government Investment and Financing which had established tight relationship with fiscal and finance was highly valued by various countries all around the world. Existed as the ’visible hand’ making up for the shortage of market mechanism, Government Investment and Financing started to thrive in recent years. Government Investment played an important role in local economy development with the function of offering support to funds as well as the guidance to industrial developing.Despite the late start of Government Investment and Financing in China, local government turned to a respectively independent interested party after performing of the tax sharing reform in1994.To relieve the bottlenecks of mismatching between purses and powers as well as acquire more local infrastructure construction funds and industrial guidance funds, the Operation of Government Investment and Financing stepped into a brand new exploration stage along with the development of government investing platform. However, the developing Government Investment and Financing generated problems and dilemmas. In spite of the dilemmas, the operating of Government Investment is necessary to maintaining the continuity and stability of public products supplying in current system and mechanism. Thus, the function of fiscal lever, financial lever and social capital lever must be performed very fully.Combined theory and practice, compared diachronic and synchronic, the Article was demonstrated in the path from problems analysis to problems resolution. Divided into four aspects, the Article discussed the operating of Government Investment and Financing in China’s economy transiting development.Firstly, the Article introduced domestic and overseas studies on practicing modes of Government Investment and Financing, summarized theories related. Also, through the study of diachronic on industrialization promoting, urbanization motivating and industrial structure progressing as well as the study of synchronic on mode of Chongqing, Shanghai, Tianjin and T City, the Article briefly stated the influence of Government Investment and Financing on local economy development.Secondly, the Article analyzed the dilemmas faced by development of local Government Investment and Financing from four aspects of internal control, elements constraint, expertise shortage and supervision intensifying. Moreover, the Article also analyzed the bottlenecks occurred in the development based on the practice of T City.Thirdly, apart from the limitation and inherent risk of Government Investment and Financing, the Article also discussed the path an effectiveness of Government Investment and Financing Managemention promoting the method of economy development. Along with the example of T City, the Article made a detailed and objective demonstration on the effectiveness and ability of sustainable developing of Government Investment and Financing Managemention in T City.Finally, the Article proposed the optimization route of Government Investment and Financing promoting the local development as well as the ideas of assuring the realization of long-term target on the basis of short-term target through designing the optimization plan from input and return prospective on the example of T City.In the last paragraph of the Article, the author proposed that in local economy transiting the depth and breath of Government Investment and Financing Management should be paid special attention to. Meanwhile, the leading and guiding role of government should be positioned properly as well.