The Solution Of Local Governments Debt:PPP Mode

In this paper, we mainly study how to solve the problem of Chinese local g overnment debt by extending the PPP model. In 1994, China implemented the tax sharing system reform, the local government property rights do not match the de bt began to expand rapidly. In particular, after the global financial crisis in 2008,China in order to stabilize economic growth,through the implementation of a pr oactive fiscal policy, local governments in order to support the central capital, onl y through various means of borrowing and economic development.The National Audit Office in 2010,2012,2013 repeatedly audit of local gov ernment debt, with the slowdown in economic growth, huge debt coming due, the land finance is weak, the pressure of public sector spending are larger. In the fa ce of local government financing dried up under the background of a local gover nment in order to ensure economic growth, on the other hand, the city is facing a huge shortage of funding for infrastructure construction, the government on its o wn fiscal revenue can not effectively provide all of the supply of public goods. T he local government budget gap,through the introduction of social capital by usin g the PPP model to solve the problem of local government debt, this paper in-de pth discussion and analysis, firstly analyzes the local government debt China local government debt of the definition, classification, causes and current situation, the n put forward the promotion of PPP model to solve the problem of local debt, th rough the economic reasons the back analysis of the PPP model to resolve local government debt, the PPP model on the one hand, reduce the burden of local gov emment expenditure, on the other hand to improve the efficiency of the supply of public goods.Finally, through the PPP model analysis of specific cases, can make up for t he public sector and the private sector to a large extent,private sector participatio n in city public facilities and public service supply is bound to the development of market economy. Through the promotion of PPP model for China's public sect or and private sector through the provision of urban public facilities and products and solve the local debt dilemma.