Study On The Fiscal Risk Prevention And Control Of PPP Project In China

In the field of traditional public services,there are problems such as products singularity,insufficient quality,low investment return,and uneven regional distribution.It is difficult to meet the people's ever-growing needs for a better life.In 2014,Ministry of Finance and the concerning departments,under Decision on Some Major Issues Concerning Comprehensively Deepening the Reform by the State Council in the Third Plenary Session of the 18 th Central Committee of the CPC,determine to increase the quantity and quality of public services.The PPP model is one of the main measures for supply-side structural reform and an important part of comprehensive deepening reforms.It has major economic and social significance.The report at 19 th CPC National Congress puts forward,‘we must take tough steps to forestall and defuse major risks'.The fiscal risks of PPP projects are objective and are constantly changing along with the development of PPP.Under the background of the gradually explicit fiscal risks of various hidden PPP projects,solving the fiscal risks of PPP projects has gradually become the key to the sustainable and healthy development of PPP projects.On the basis of a profound grasp of the connotation of the development of China's PPP under the new situation,the paper determines the fiscal risks of PPP projects as the research object.The paper is based on the logical thinking mode of asking questions,analyzing problems and solving problems.Based on the core analysis framework of fiscal risks,the paper explores the connotation and impact mechanism of fiscal risks of PPP projects.The research conclusions can provide reference for preventing and controlling the fiscal risks of PPP projects.The relevant research methods can provide reference for the identification and analysis fiscal risk of PPP projects.The paper argue that according to the causes of risks,the fiscal risks of PPP projects can be divided into two groups.The endogenous fiscal risks of PPP projects are mainly due to the internal problems in the fiscal system.Therefore,it is possible to minimize the adverse impact of the endogenous fiscal risks of PPP projects by formulating targeted institutional measures,technical measures,and regulatory measures.The exogenous fiscal risks of PPP projects are mainly influenced by the contingent factors external to the fiscal system.Therefore,by reducing the probability of occurrence of contingent factors,the adverse effects of the endogenous fiscal risks of PPP projects can be minimized.In order to prevent and control the fiscal risks of PPP projects,the paper proposes several suggestions in order to achieve the objective of preventing fiscal risks of PPP projects and promoting the development of PPP standard.Suggestions:(1)Speeding up the establishment of laws and regulations of PPP at the national level.(2)Establishing a strong fiscal risk management system for PPP project.(3)Improving the fiscal and taxation system for PPP.(4)Formulating a local government credit system.(5)Increasing the transparency of PPP pruuoject information.