Study On The Risk Of Local Government Debt Dismantling By PPP Model

In recent years,with the continuous development of urbanization in China,local government financing needs and debt levels have also been surging,and the risk of local government debt is rising.Central based on this,increased the local financing platform and the management of local government debt reorganization,financing way ahead through the local government financing platform to unsustainable,so urgently need a new financing model to promote the development of infrastructure construction and the promotion of urbanization.In this context,the central government puts forward the PPP mode as an important way for the future infrastructure construction.As an important way of infrastructure construction in the future,PPP mode has been promoted in China,and policy formulation and project promotion have been carried out in the country.After China's economic development has entered a new normal,it faces multiple contradictions: the growth of fiscal revenue is slowing down,but it needs to increase infrastructure investment to drive the economy.As the government pays off its debt,it needs to provide better public services to improve people's lives.In the public project,the PPP mode is basically unnecessary for the government to carry out the fiscal investment in the current period,and the government debt can be reduced through the transfer of assets,which becomes the solution to the current contradiction.With the local government financing situation,the central government had high hopes on the PPP model,not only hope the PPP model for local governments to inject new capital,improve the efficiency of public product,also hope that the PPP model can be dissolve the risk of local government.However,for the time being,local governments are more concerned with the financing function of PPP mode and blindly introduce PPP mode.Due to the immature development of PPP mode in China,the blind introduction of PPP projects will not only alleviate the financing pressure of local governments,but also bring risks to the government.Therefore,it is necessary to analyze the relationship between PPP mode and local debt,grasp the influence mechanism of PPP mode to resolve local debt risk,and avoid the debt risk of local governments.