A Study On The Difficulty Of Landing PPP Projects And The Optimization Of The Return Mechanism

local governments began to focus on the issue of hidden debt from the perspective of improving the efficiency of government financing and the transformation and upgrading of financing platforms,and the potential systemic financial risks arising from debt risks have been an important area of concern for the Central Government.The vigorous promotion of the PPP project model at the local level is one of the major decisions and deployments made by the Party Central Committee.However,in the actual promotion of the PPP project model,the overall level of landing rate is not high and there are relatively obvious regional and return mechanism differences.As the initiator,participant and supervisor,the government plays a pivotal role in the successful implementation of PPP projects.The fiscal expenditure responsibilities corresponding to PPP projects will generally involve general public budget expenditure and government fund budget expenditure.From the perspective of the general public budget,the general public budget revenue of the local government cannot fully meet the expenditure needs,so it has a strong reliance on the transfer payments and tax rebates from the central government.From the perspective of government fund budgets,revenue from the granting of state-owned land use rights is the most important source of revenue,however,in recent years,real estate regulation and control policies have been issued frequently across the country,and local governments are generally facing downward pressure on revenue related to land rights.Based on the above two mechanisms of local fiscal pressure and the basic principles of financial affordability of PPP projects,this paper proposes that there may be both pull and resistance effects of local fiscal pressure on PPP landing rate,and verifies the inverted "U"-shaped linkage between the two by constructing a Tobit model.In addition,this paper also proposes that there are differences in the impact of local fiscal pressure on the implementation of PPP projects with different payback mechanisms,and verifies this by constructing an ordered logit model.Finally,this paper puts forward policy recommendations to reasonably promote the implementation of PPP projects: First,local governments should fully consider their own financial self-sufficiency and establish a dynamic list of PPP project promotion plans by taking into account the dynamic changes of the financial self-sufficiency rate.When the fiscal self-sufficiency rate is below 24.88%,local governments should be cautious in initiating PPP projects.Secondly,this paper proposes the use of government fund budgets to alleviate the problem of "difficulty in landing" PPP projects,taking into account land transfer revenue and the scale of issuance of special bonds.Thirdly,this paper suggests that local governments should take into account their own financial situation and optimize the return mechanism of PPP projects,especially when they are under greater financial pressure,they should be cautious in initiating government-paid projects.Fourthly,local governments should establish a reasonable risk-sharing mechanism to promote the implementation of PPP projects.