Research On Fiscal Risk Of Government Guiding Fund

The government guiding fund refers to the policy-based fund established by financial contributions,so as to leverage all kinds of social capital investments through joint stock operation,financing assurance and other ways.The market-oriented operation and management modes are adopted for this fund and thereby designed to promote the realization of several governmental strategic targets such as encouragement of entrepreneurship and innovation,as well as support to specific industries and field development.Since established in 2002,the government guiding fund in China has been developing for more than a decade with a preliminary scope,moreover the policy environment is also becoming increasingly perfect.In recent years,the economy in China has entered a new era.It is difficult to meet the expenditure demand of new era reform in the face of era requirements of supply-side reform,industrial structure adjustment and upgrade,clean-up and rectification of the local government platform companies as well as limited financial rights and resources of local governments.As an innovative tool for leveraging the social capital and promoting the utilization efficiency of financial fund,the government guiding fund in China develops at a high speed thanks to the encouragement of national favorable policies,with an increasing quantity and extensive varieties,but there is a huge fiscal risk behind it.Especially under the police background that Chinese government adopts deleverage,prevents and resolves the major risk and strictly controls the implicit debt of local government,the potential fiscal risk issue of government guiding fund should be attached to with enough attention and strictly controlled.This paper firstly performs theoretical analysis on the causes for the fiscal risk of government guiding fund in China and analyzes its realistic condition by means of fiscal risk matrix and analytic hierarchy process,and it is concluded that the fiscal risk of government guiding fund in China is mainly demonstrated as direct liabilities of the government brought by future expenditure commitment,contingent liability of the government brought by undertaking project risk and providing government guarantee and financial risk due to local government expanding participation scope.Additionally,the practical condition of prevention measures for the fiscal risk of government guiding fund in China and case analysis suggest that the prevention measures for the fiscal risk of government guiding fund in China have such deficiencies as weak fiscal risk prevention awareness,obscure risk management responsibility of government department,irrational risk identification and sharing system and imperfect fiscal risk supervision and evaluation system.Therefore,the following perfecting suggestions are proposed in this paper,including to enhance the risk prevention awareness of the government guiding fund in China,to explicit the duty and authority of government departments regarding risk management,to determine risk responsibility based on risk sharing game model,to comprehensively improve the fiscal risk supervision and evaluation system of the government guiding fund in China.In the process of seeking for countermeasures,which is to improve the fiscal risk prevention of the government guiding fund,two study methods including case analysis and comparative analysis are adopted in this paper.On the one hand,both national leading fund transformed from national scientific and technological achievements,and provincial industry fund in Yangtze River Economic Zone are selected as study objects.Based on the investigation on their actual operation and effects,the enlightenment regarding fiscal risk prevention of government guiding fund is obtained.On the other hand,they are compared to three typical government guiding funds abroad,so as to summarize the valuable experience beneficial to the fiscal risk prevention of government guiding fund in China.Therefore,the following perfecting suggestions are proposed in this paper,including to enhance the risk prevention awareness of the government guiding fund in China,to explicit the duty and authority of government departments regarding risk management,to determine risk responsibility based on risk sharing game model,to comprehensively improve the fiscal risk supervision and evaluation system of the government guiding fund in China.Finally,the fiscal risk prevention direction of the government guiding fund in China under the background of comprehensively preventing and resolving major risks is further discussed in this paper.It is suggested to enhance the level of establishment subjects so as to strictly control the fund quantity and distribution,moreover,the partial substitution of local government bonds to government guiding fund needs to be considered properly.