The Research About The Dilemma And Outlet Of The County Government Financing Company

Since the tax reform for 20 years,China’s local government financial resources were improving little by little every day,and have to undertake the growing duties,especially represented as the county economy,the changes caused a heavy burden and uncomfortable.At the same time,it caused a sharp rise in the Chinese local government debt.And the debt ratios even went up more than the European and American debt crisis line.The problems of county economy were urgent,and caused wide attention both at home and abroad.This article comb the county platform company debt and reforming mainly from four aspects,then put forward a set of effective solution.The first part,we discuss the government intervention theory and the theory of public pools and other important concepts,and summarize its analyzes about the county economy which is helpful.The second part,the paper summarize the present problems in the county platform company in our country,and they can be useful in later stage.The third part,with F county as an example,the paper analyzes the finances and human resources,finance,operations,and the current problems and difficulties in F county platform company,and puts forward the preliminary transformation idea.The fourth part,the typical foreign experience is summarized,for example the United States,Germany,Japan.The paper also discuss the experiencein of hengshan county,Y county and XX county,and all off them are famous in China.This paper obtained the following conclusions:(1)Our county Economic debt is very large,and it is so urgent that need the appropriate policies to resolve as soon as possible;(2)we should be optimistic about the reform of the county economy financing company,because it will play a more important role in economy developing in the future;(3)To solve the problem about the county economy and financing company must focus on both internal factors and external factors,and we should not be hurry about this;(4)If we want to solve the problem of the counties financing company,we need to perform every provinces as one unit.In order to standardize the development of county economy financing platform,this paper presents the following ideas and suggestions: self-reform(1)To expand their business scope actively,and integrate the assets;(2)To classify the resources,and strengthen co-operation;(3)Explore new financing actively(4)To separate the responsibilities of the government and the investment company improve theperformance appraisal system.Policy recommendations(1)The provincial department operate the reforming policy and the local government execute it;(2)The national classifies the local government debt and replace it in stage,then promote all the country investment company to reform;(3)The provincial department of the county regulate the financing company’s behavior and the legal person of the company according to legal assessment system;(4)To explore the county local government how to change financing model;(5)To refresh the country investment company on the basis of the provincial government and make a classification and merge between each investment company;(6)The tax system reforming in order to promote the unity of powers and financial authority separated;(7)The chairman of the local investment company are appointed by the government,and the general manager appointed by competition;(8)The county government should promote cooperation between investment company and education and health care institutions,which can raise the reserve assets’ s value;(9)The county government should bond the investment company to develop the local economy especially make investment in the old city.The greatest contribution of this paper is that the thinking of ideology run through everywhere in this paper,the companies reform themselves is internal causes,and provincial policies are external causes;the current debt of the investment company is a major contradiction,but how the investment company to become China’s economic support as the main aspects of conflict;the financing debt is common,but each county also has its character,we should cheat it in different way.I make this paper according to the county economy’s real trouble and by summarizing the western countries(USA,Germany,Japan)and representative of county investment company reform’s good policy(Hengshan County,Y County,XX County)and with the perspective of the provincial department’s policies,and put some conclusions about the county finance platform,system,supervision mechanism,business strategy,policy needs and the direction of the company’s development.