Research On Risk Prevention And Control Of Local Government Financing Platform In L New Area Of Chongqing

With the continuous development of China's economy and the acceleration of the process of urbanization, the need for the funds to develop urban construction is soaring. However, the fiscal power and administrative authority of local governments is mismatching and local governments usually take on more affairs while its financial resources are insufficient, which leads to the result that the scale of local government financial resources fails to keep up with the pace of the rapid development of urbanization and the financing gap of urban infrastructure construction and public utilities continues to expand. In order to make up the financing gap and break through the legal impediment of local governments debt financing restriction, local governments at all levels have set up a financing platform with more market-oriented operations and more flexible and convenient financing process, which has opened up new channels for local governments financing, eased the contradiction between financial revenue and expenditure, greatly promoted the development of urban infrastructure and public utilities and played a significant role in promoting the rapid development of local economy. But with the introduction of a package of four-trillion-yuan economic stimulus plan by the central government, financing platforms have sprung up like mushrooms, growing in blowout type, debt scale being constantly expanding. Accompanied by the blind expansion isnon-standard internal control and the absence of government regulation, which furthermore has resulted in emerging risks like substantial increase in non-performing loans or even financial chain fracture in some districts, arousing high social attention and concerns.Regarding local government financing platform in L new area of Chongqing as the research object, from the perspective of government regulation, using both qualitative research methods like literature research, field research, comparative analysis and quantitative research methods like statistical analysis, this thesis attempts to: firstly review the concepts and theories of local governments financing platform; secondly demonstrate the basic financing situation and current circumstance of risk prevention and control in L new area, and at the same time make a detailed analysis of problems existing in risk prevention and control so as to generate measures to prevent and control risks based on successful experience and facts and from the perspective of strengthening government regulation; and meanwhile, propose macroscopic safeguard measures of local governments financing platform and improve the financing efficiency of the platform from perspectives of perfection of financial management system, establishment and improvement of the local governments debt management mechanism and deepening the reform of local governments investment and financing system; lastly and hopefully this thesis will provide theoretical reference for risk prevention and control of local governments financing platform in order to ensure a sound development.