Research On The Reform Of Public Infrastructure Investing And Financing System

The construction of public infrastructure is an important support of economy and social development, and also an important indicator of development of a country or area. Public infrastructure investing and financing theory has been continuously enriched in practice with investment scale becoming larger, for the current fiscal budget has been far from the actual demand of economy and social development.From the point of investing and financing practice in the construction of public infrastructure, government-oriented financing is the main source of fund of infrastructure construction, while the methods of market-oriented financing are few and single. For social capital being invested in the construction of public infrastructure, investing and financing system reform has cleared the impediments since the1990s. But in reality, there will be difficulties in the investment of social capital because of the outdating reform methods and the characteristics of being public and monopolistic in the construction of public infrastructure. The large-scale government investment and low efficiency in investing management lead to unreasonable allocation in social resources and large fiscal risk. The infrastructure construction will become a heavy burden for local finance If couldn’t been curbed by effective measures. Summarizing the basic experience of our infrastructure investing and financing system reform, mirroring the basic mode and reform history of the western developed countries are to solve and standardize the financing behavior of our local government, improve the efficiency of government investment, and promote the benign cycle of infrastructure construction.We can study the path and countermeasure of infrastructure investing and financing system reform from two aspects of government-oriented system and market-oriented one. There are two problems for the government-oriented financing:waste of financial capital and other capital because of low efficiency, financial pressures and increased risks because of government taking part in too much. As regards to the government-oriented financing, strategies will be put forward by improving the investment managing mode and the financing dilemma of local government. As regards to the market-oriented financing, system regulations which can satisfy the public benefits and achieve the development of infrastructure industry will be built up. At the same time, these system regulations could promote the franchise system as the main breakthrough and extend the conception of the franchise system. Privatization is a choice for the infrastructure investing and financing system reform, which can be seen as the cooperation between the public sector and the private one. Series of privatization such as contract, government subsidy and purchasing, sale, relaxing the regulation can be seen as a cooperation relationship with the nature of franchising.For the financial investment of the public infrastructure, the investment impulse of local governments should be restrained by acting according to their abilities, distinguishing the order of priority, building perfect transfer payment system and clearing the division of administrative powers. The efficiency of the limited fiscal funds should be improved, and the impulse of the department budget should be restrained through the agent-construction system. For the operating infrastructure, the efficiency should be improved by opening to the market as far as possible and taking full use of the rules of competition. The emphasis is to set up and improve the franchise system framework which can form close cooperation between the government and private capital. The franchise system framework will improve the efficiency of resource allocation of the whole society and reduce the total cost of the economy operation.