A Legal Research On How To Revise The Legal Regulation Of Local Financing Platform

Under the background of domestic finance law deficiency, and lack of a cleardivision of finance rights and duty between the central and local government.Thelocal government on the one hand insufficient in public goods supply, On the otherhand can’t resist the temptation of "fiscal opportunism". The above factors resulted inrapid development of local financing platform.Local financing platform has played apositive role in tackling the international financial crisis and stimulating localeconomic growth, but with the rapid establishment of local financing platform,itsoperation mechanism and distribution of responsibility involve lots of legal problems.First of all, due to the regulation of economic law，local financing platform shouldstrictly comply with the principle of appropriate intervention in the aspect ofsetting.The practice of the local government which support profitable-projectsconstruction and quit nonProfitable-projects not only violates the appropriateintervention principle, but also contrast to the original goal of setting the localfinancing platform.There are two problems in the aspect of operation in localfinancing platform,one is the lack of effective supervision of Local people’s congress(NPC),the other is lots of irregularities in the process of take a bank loan by localfinancing platform.Finally, in terms of take the responsibility,the local financingplatform should take responsibility independently since it is a independent marketplayers.The practice of the local government which take responsibility for localfinancing platform is violates the fiscal equity principle.In addition,on account of theshortage of the Strict punishment to the local government and its relevantirregularities under current law,there are still a lot of violation of local governmentguarantees even the current Security law prohibited the local government guarantee.The author tries to put forward countermeasures for improve the legislation of thelocal financing platform. according to promote the government administration andsafeguard fair competition.