Research On Debt Risk Prevention And Control Of Y Government Financing Platform Companies

After the implementation of the tax policy by the central government in 1994,local governments did not have enough funds to develop urban infrastructure under the circumstance that they had great power and little financial power.The central government does not allow local governments to run fiscal deficits.In order to solve the problem of local governments' shortage of funds,the ministry of finance supports qualified local governments to set up financing platform companies to solve their financial difficulties through bank lending and debt issuance.In order to raise funds for urban infrastructure development,local governments have set up financing platform companies one after another.After the outbreak of the global financial crisis in 2008,the state council implemented the loose monetary policy to stimulate economic development to cope with the crisis.Local government financing platform companies are an important carrier of the 4 trillion yuan economic stimulus.Local financing platforms have played an important role in Public welfare and semi-public welfare projects of urban infrastructure construction,promoting the process of urbanization.The overheated development of platform companies has led to a sharp increase in the scale of hidden debts of local governments,forming some government debt risks.Since 2014,the central government issued successive policies to deal with the possible debt crisis.The debt scale of platform companies was strictly controlled,and the financing functions of substandard platform companies were cleaned up.We standardized and managed the financing activities of local governments,controlled the disorderly expansion of government debt,and defused the potential debt crisis.Starting from the prevention and control of debt risk of local platform companies,this paper first introduces the background of government debt crisis and domestic and foreign research.Then the theory of local government debt riskmanagement is discussed.Then take the platform company of Y city as an example,the audit stock debt of debt risk prevention and control of Y city is adopted,and the debt emergency disposal mechanism is formulated.The transformation and upgrading of the platform company and the improvement of the level of employees are introduced.The paper also analyses the risk of high debt-rate repayment caused by local government's one-sided pursuit of political achievements and excessive expansion,and further puts forward countermeasures for debt risk management.Finally,the insufficiency of data adoption and the insufficiency of the author's visual field are explained,and the future development is prospected.The innovation of this paper is to analyze the government's debt risk prevention and control policy from the perspective of others.Under the premise of comprehensive policy tightening,the debt crisis has not been lifted.The disguised execution of local government is analyzed,and the debt risk of local government platform company is pointed out.The key point is that local government should have reasonable planning for local economic development.Don't blindly pursue political achievements and get rid of the assessment model aiming at GDP.The government platform companies will operate in a market-oriented mode,make better use of the local financing platform to develop the local economy,and do a good job in debt risk prevention and control means.