Research On The Identification And Risk Prevention Of Hidden Debts Of Local Governments In PPP Projects

As a tool to relieve the debt burden of local governments,PPP model has become an important force in the process of public infrastructure construction and urbanization in recent years.However,with the development of a large number of PPP projects,the characteristics of long investment cycle,low rate of return and high requirements for professional technology are gradually revealed.The existence of such problems as "clear stock and real debt" and "minimum guarantee clause" can not solve the government debt stock,but will increase the government debt flow.However,if the expenditure responsibility generated by PPP project that needs to be repaid by the government is not directly reflected in the financial statements of the government,it will exist in the form of implicit debt,which is free from the government's financial budget.The hidden debt is not real and the scale is difficult to measure,which will become the "grey rhinoceros" that affects China's economic stability.At present,the implicit debt of local governments in China mainly exists in the municipal and countylevel governments.The repayment sources of these two levels of governments are lack of necessary guarantee,which often restricts the development of local economy.The heavy implicit debt pressure seriously occupies the financial resources of local governments,reduces the governance effect of local governments,and is difficult to provide funds for other projects and invest in infrastructure construction Under the pressure of implicit debt,local governments will rely more on land finance to form a vicious circle;in addition to affecting local finance,implicit debt through risk transmission mechanism will damage the central bank's finance,financial system and economic operation.Therefore,it is of great significance for local governments to study hidden debt and put forward preventive measures in the context of PPP.This thesis defines the implicit debt by combing the literature about the implicit debt and referring to the views of scholars.After defining the connotation and extension of the implicit debt,combined with the four expenditure responsibilities of PPP project stipulated in the guidance on the demonstration of the financial bearing capacity of government and social capital cooperation projects issued by the Ministry of Finance in 2015,the possible existence of the implicit debt will be determined in the whole life cycle of the project The hidden debt is identified,the potential risks caused by the hidden debt are analyzed,and the preventive measures are put forward.It is mainly divided into the following aspects: first,identify the implicit debts of local governments in PPP projects,and classify them according to the causes of debts.Then it analyzes the debt risk behind the implicit debt,and puts forward the risk prevention measures.Through in-depth analysis of the case of the PPP project of Qingdao Metro Line 6 phase I project,the specific practices in the case are clarified.According to the definition and classification of implicit debt in this paper,it is identified that the operating subsidy expenditure,risk bearing expenditure and supporting investment expenditure of equity investment in the PPP project may lead to implicit or contingent debt;equity investment expenditure,risk bearing expenditure and supporting investment In expenditure,implicit direct debt may be formed.According to the expert opinion method,the paper points out that the risk caused by the implicit debt is generally or even on the high side.The government takes the initiative to bear the financial cost caused by the change of interest rate which should be in the charge of social capital.The implicit debt risk is the highest.The project is beyond the planned progress and the project company is difficult to raise the corresponding funds in a short time The second is the hidden debt risk caused by the fund of.According to this,aiming at the general or even high implicit debt risk of the project,the implicit debt risk related to the equity investment expenditure,the feasibility gap subsidy and the implicit debt risk related to the market factors,it is proposed to take the project as an independent accounting subject for project accounting,disclose the implicit debt in the whole process of project construction and operation,and try infrastructure R EITs and other means of financing and other measures are taken to prevent risks,so as to prevent the debt crisis of Qingdao municipal government caused by the construction,operation and delivery of the project.