Research On The Development Of Z City Government Financing Platform

As China's economic strength continues to improve and the urbanization process continues to advance,infrastructure construction and urban supporting facilities construction demand continues to increase.As investment spending is mainly resolved by local governments,local government funding pressures also rise.The tax-sharing reform in 1994 made the local government financial resources severely weakened.At the same time,the introduction of the budget law clearly restricted the direct borrowing of local governments below the provincial level.The national allocation and local financial resources were far from enough to support the large amount of funds needed in the infrastructure construction process.Therefore,local governments need to explore a new financing method to solve the funding needs,and the government financing platform was born in this context.Practice has proved that the birth of the financing platform is of great significance to alleviate the pressure of local government financing and promote the development of urban construction.However,in the operation of this mode,many problems have accumulated,which has led to the increasing risk of local financing platforms in China,and this risk is easily transferred to the government and financial institutions for the sustainable development of local finance in China.And the growth of the national economy may have a large negative impact.Under this environmental background,the local government financing platform needs to be transformed.This paper makes an in-depth study on the relevant data and information of Z city's government and financing platforms.By analyszing Z city's the economy,financial situation,platform company's operation and debt situation,it has determined the dilemma that Z city's financing platforms face,including tightening regulatory policies,increased debt risk of financing platforms,rising fiscal deficits,deep integration of financing platforms and financial risk,and obstruction of policy bank support.By investigating the actual situation of the debt of Z City 's financing platform and combining the national requirements for the transformation of the government financing platform,the specific direction and strategy of the transformation were proposed from the perspective of Z City,including the establishment of an integrated city operator,the establishment of a debt risk control mechanism and the information disclosure mechanism,fully striving for and implementation of national policies,and distinguishing the financial and administrative rights of infrastructure construction.At the same time,for the specific countermeasures and suggestions,the difficulties and constraints that may exist in the transformation process are proposed,including the mobilization of the main government leaders,the constraints of policy implementation,changes in financial supervision policies,and arrangements for the construction of existing projects under construction.The purpose is to help the financing platform grow its strengths and avoid shortcomings,take into account possible problems in advance,and make good overall arrangements for the transformation,so that the financing platform can be sustainable in the long run,while reducing the level of local government debt.This article combines theoretical tools and a practical case to make an in-depth analysis of the development of government financing platforms in Z City,and puts forward feasible suggestions for the transformation,and makes a powerful supplement to the research of local government financing platforms in China.It has strong reference significance to the development and transformation of the financing platform in other areas.