Research On Financing Problems Of Local Government Platforms

As the main financing bearer of local government infrastructure construction, local government investment and financing platforms play a positive role in local economic development. With the national implementation of "maintaining growth, expanding domestic demand" reacting to the financial crisis, the massive amount of funds flooded into local government platforms, resulting in explosive growth of local government debt. Along with the deepening reform of market-oriented investment and financing principles, the financing problems currently in the financing process of local government platforms for the company require to be solved, how to meet the financing needs of local government platforms while controlling the risk has now become a major priority.This paper makes a deep analysis of the financing process in H Local Government Platform, the object of study, based on the research results at home and abroad. Firstly, analyzes the formation of motivation and operational mechanism of local government investment and financing platforms, introduces the theory of government functions theory, fiscal decentralization theory, asymmetric information theory and program-based theory to elaborate the government infrastructure financing systems. Then details the situation and status of H Local Government Investment and Financing Platform, points out some issues worth exploring in the present financing process, which reveals such problems as blurred financing body, weak internal financing capacity, limited external financing channels and high financing costs. After a comprehensive analysis of the source of these problems, finally draws up to the corresponding countermeasures, regulate the relations between local government investment and financing platform with local governments, improve the profitability of the local government investment and financing platforms, explore a wide range of financing measures and reduce financing costs. This article aims to provide comprehensive, concrete and feasible improvement recommendations, which may benefit the future financial process of H Local Government Investment and Financing Platform.