Study On Evaluation Of Financial Affordability Of PPP Model

In today's society,people have higher and higher requirements for material life.However,the fiscal revenue and expenditure of each local government should always match to promote the sound development of the economy and society.From the current situation,most of the local fiscal revenue has been unable to meet people's growing demand for high-quality products and services,and it is difficult to meet society's expectations for sound infrastructure construction.Infrastructure used to be built at the government's expense,but this approach is no longer suited to economic development.In order to alleviate the contradiction between supply and demand,PPP(government and social capital side cooperation model)came into being.This model introduces a new economic sharing role,that is,the social capital side.Through the injection of social capital in infrastructure construction,the government can reduce the financial input,so as to revitalize local funds to some extent and relieve the financial pressure.However,the existence of new things is always two-sided.The rational and compliant application of PPP model can bring about a series of positive effects.If the application is improper,the implementation of PPP projects that have not passed the audit will cause serious debt problems and hinder the development of local economy.Therefore,whether the PPP project can be implemented smoothly needs to do a good job in the early stage,and must also consider whether the local government's financial capacity can meet the requirements.To carry out a serious research and analysis on the financial bearing capacity of PPP projects,explore how to better complete the evaluation and demonstration of financial bearing capacity,and strive to draw an objective and fair conclusion,is not only the requirement of controlling the debt scale and risk,but also the guarantee of the successful completionof PPP projects.This paper uses the method of literature research and case analysis to evaluate the financial capacity.Firstly,on the basis of consulting a large number of literature and materials,this paper makes a relevant collation and description of the theoretical part,including the general process of concept and financial capacity evaluation.Secondly,it analyzes the internal and external factors that affect the evaluation of financial bearing capacity,and constructs the evaluation model of financial bearing capacity by using analytic hierarchy process.Then,YS city comprehensive urban improvement project was analyzed as a case,and a series of data were calculated to reach the conclusion that the project could be successfully implemented through financial capacity evaluation.Finally,some Suggestions are put forward to improve the evaluation of PPP financial bearing capacity.