Research On The Causes And Countermeasures Of Debt Formation Of Local Government Financing Platform

Local government financing platform(LGFP)is an enterprise as a legal person based on China's national conditions in a specific historical period,which has made great contribution to China's urbanization and steady growth since its appearance.However,LGFP has accumulated a large amount of implicit government debt as it grows stronger.Firstly,this paper analyzes the definition,position and function of LGFP,and also its current development situation,of which the relationship between LGFP and local government is discussed in a pioneering way;Secondly,the general introduction and relevant case analysis are carried out about the debt situation and formation of LGFP,among which the formation process of LGFP' debt is introduced based on the specific landmark historical events;Thirdly,after the introduction and analysis,the paper analyzes the causes of LGFP' debt from the aspect of fiscal and taxation system,macro-economy,financial competition and financing conditions;Finally,according to the debt situation of LGFP,the paper further articulates by different participants as the starting point,and puts forward corresponding suggestions and countermeasures for debt resolution from the national,local government and LGFP levels.