Research On Legal Issues Of Local Government Financing Platform

Currently,the urbanization of China is still far from over. The rapid increasing of city population and the continuous expansion of city size requires further enhancing of city infrastructure construction. However, local government revenue is difficult to meet the huge demand for public service.Meanwhile local governments are banned form Debt financing directly according to our budget law and other legal provisions.As a result, local governments always establish government financing platform to meet the the demand for funds in the implementation of public affairs.The establishment of local government financing platform has made important contributions to solve the funding gap problem, which also verified the correctness of original establishment of this platform. But, on the other hand, due to the platform itself as a new thing, in the development process there will be some problems or areas for improvement, such as the Platform Co investment is not standardized, the internal organization is not perfect, the platform is not clear in the legal localization, the disclosure of information was far from transparent and so on.The debt default risk has become increasingly prominent in the process of rapid expansion of the platform,which could lead to financial crisis or legal crisis.Therefore, perfecting the financing platform, strengthen the supervision of the platform, the establishment of the legal system and corresponding regulation rules will be put on the agenda.In the process of writing this paper, combined with the actual development process based on background, analysis of the local government financing platform,respect the historical facts, the local government financing platform fully affirmed the positive role in promoting infrastructure construction, the power of public affairs, the rationality of local government financing demands for approval; at the same time,focus on finishing the existing problems of local government financing platform, the current legislation and the advanced experience of foreign countries and the situation of our country and the developed countries in different places, demonstrate the construction of local government financing platform in China should be based on the improvement of the existing laws and regulations, a clear relationship between thelocal government and the rights and obligations of the financing platform, establish and improve the information disclosure system and risk warning system, and the guarantee law proper adjustment, in order to protect the local financing platform for sustained and healthy development.