Present Status, Problems And Policy Recommendations Of The Local Government Investment And Financing Platform

Local governments at all levels to accelerate urban construction and economic development, the rapid expansion of the scale of expenditure, in the case of the original financial authority and powers of local governments do not match, forming a huge financial shortfall. To bypass local governments at all levels shall be the subject of legal constraints as finance, "legal" way to raise a lot of money, all regions have developed various types of local government financing platform. However, due to the large size of the financing, regulatory and other institutional mechanisms in place factors, local government financing platform to play its due role, but also produced a series of negative issues. Therefore, the local government financing platforms have become concerned about the academic and government research hotspot.This paper studies suggest that local government financing platform as an economic mainstay of the market nominally, with the for-profit economy is the main other operating essentially different, specific purposes within the scope of the company. The reason why local government financing platforms appeared in large numbers in a relatively short period of time, has its background various factors. Excessive dependence on investment-driven economic growth, accelerating urbanization, deterioration of the economic environment and a lot of money deposited, there are huge amounts of state-owned assets, such as investment and financing platform constitutes emerging economic background. Meanwhile, the budget system of fiscal decentralization and local government competition and the formation of a system of soft constraints background. "Budget Law", "Guarantee Law" and other laws and regulations on the legal aspects of the government body formed a series of constraints arising from investment and financing platform spawned legal background.Across the country in the course of the development of local government financing platform, have been exploring the establishment of a variety of typical patterns and accumulated successful experience. This article briefly discusses Shanghai, Chongqing, Tianjin and other places of local government financing platform running mode, while the main problems existing platforms were analyzed. This paper argues that, because of the various local government financing platforms exist, and some brought their own appearance last resort, and its rapid growth is bound to bring a lot of negative impact. With the expansion and the expansion of the scale of investment and debt financing platform, will inevitably bring about the risk of asset bubbles and inflation increased, inhibition of private economic development activity is not conducive to improving the market economy system and the upgrading of China’s economic transformation, while indirect pressure to push up prices cause the people’s livelihood Finally, also challenges the authority of law.In the development of the local government investment and financing platform, the attitude of the central government after turning, to a large extent influence the development of the platform or stagnation. In this paper, the central government over the years of local investment and financing platform of macro policy has carried on the summary analysis, and put forward the policy review. On the basis of it, in this paper, the standard local government investment and financing platform development policy Suggestions are put forward. This paper argues that in the short term, should clean up the investment and financing platform and its debt as soon as possible, improve the investment and financing platform management system, establish and improve the corporate governance structure, perfect the legislation of local government investment and financing activities. In the long run, to strive to change economic growth mode, promote the reform of the fiscal and taxation system, investment and financing system reform, build a more scientific and reasonable system of party and government leadership assessment, and rebuild the government financing system.