The Study Of Local Government's Financing Mode For The Public Project

In recent years,the local government rely on all kinds of financing mode to raise funds for construction.This ensures that the effective supply of public products,and promote the rapid development of local economy and society.However,in the current tax system,China has started a new round of urbanization.With the increasingly stringent regulatory financing,local government funding gap for public project will increase.The local government need to expand the new-type of financing mode.This facilitates financing towards good development.Compared with the local governments lack of funds,China capital market has entered a rapid development period,there have been many new financial instruments and products.Here gather a lot of capital and investment demand.In this paper,through the analysis of China's local government public project of several existing financing mode,analyses the urgency of existing financing mode limitations,suggests that local government can not continue to provide unlimited guarantees.The local government should use market mechanisms to control the scale of financing and regulate the use of funds,to ensure the effective supply of public projects,to prevent the risk of government debt.