Research On Legal Prevention And Control Of Debt Risk Of Local Government Financing Platform

In jurisprudence,law is a social consensus reached by people within a certain scope,and a means of regulating people's behavior in order to maintain order,but only when certain behaviors affect people's normal life,or the cost of usage economics.The income method judges that the law is required to be regulated when the cost of using the law is less than the consequences caused by certain behaviors.The local government financing platform is a product of China's rapid economic development in recent years.It maintains inextricably linked with local governments,but is engaged in businesses that can be operated by other market entities.Issues such as internal governance of local government financing platforms,liability for debts,and violations of local governments are all risks in their actual operations.However,it is these uncertain risks that have led to the emergence of local government financing platforms.A high-risk thing exists,and more importantly,it involves the financial problems of local governments,so it needs to be protected by legal means.Under the background of the Sino-US trade war,China's economy is facing continuous downward pressure,local government's fiscal revenue is also weak,and targeted tax cuts for manufacturing are needed.This is a financing platform that relies heavily on local finance.Debt will face a major test.This article will use the thinking of usage to write an economic question,that is,how to use legal means to regulate a new high-risk thing.Through a comprehensive analysis of the causes,current situation and possible risks of local government financing platforms,it is known that The reason for this status quo is that there are shallow levels of local government's impulse to develop the economy,as well as China's inherent fiscal and tax system ills.After the new "Budget Law" was officially implemented in January 2015,local government financing platforms are also generally facing the problem of transformation and development.For purpose of sustaining the healthy and sustainable development of China's economy and maintain the bottom line of systemic financial risks,Drawing on the mature financing model of local governments in developed countries,the end of this paper will try to give some constructive suggestions.