Research On Financial Risk Management Of PPP In Gansu Province From The Perspective Of Fiscal Sustainability

With the acceleration of social development and urbanization,the contradiction between the increasing demand for public services and local fiscal revenue has become increasingly prominent.After fully investigating the feasibility of the PPP model,the Ministry of Finance,the National Development and Reform Commission and other relevant departments decided to vigorously promote the PPP model to Promote regional economic development,ease local financial pressure,improve the quality and efficiency of public services,and deepen China’s supply-side structural reform and marketization.Previous studies on PPP fiscal sustainability are usually from the "my country" perspective,that is,focusing on my country’s PPP fiscal risks,but less on local government PPP fiscal risks.Moreover,in the specific implementation process of the PPP model,there are problems such as "unsuccessful fiscal commitment and backward performance evaluation mechanism",which may bring unpredictable local fiscal expenditure responsibilities,trigger fiscal risks,and even endanger fiscal sustainability.The development of the PPP model has brought new challenges to local finance.Based on the fiscal sustainability of Gansu Province and the current status of PPP development,this paper studies the financial risk management of PPP in Gansu Province through a combination of theoretical analysis and gap indicator evaluation.Mainly follow the PPP model development situation overview,PPP financial risk identification,evaluation and prevention of research ideas: The first part,elaborating the background significance of the topic selection,thinking methods,from many aspects of the domestic and foreign PPP financial risk research status review;the second part,Define the connotation of PPP fiscal risk,the principle of fiscal risk identification and the nature of debt of fiscal expenditure,and seek theoretical support for this article by discussing PPP related theory,fiscal sustainability theory,and public risk and fiscal risk theory;the third part is about Gansu PPP Describe and analyze the development background and current situation,sort out the relevant policies and the problems of PPP development,analyze the current situation of PPP development,and summarize the factors that may induce the PPP financial risk of the Gansu provincial government;the fourth part,identify the PPP with the help of Hanna matrix and the specific situation of Gansu Province Fiscal risk;The fifth part is to estimate the scale of possible debt-related fiscal expenditures of 35 landing projects in Gansu Province,combined with the revised fiscal sustainability indicator-PPP fiscal gap indicator to evaluate the PPP fiscal risk of Gansu Province The relative level is compared to understand the true status of PPP financial risks in Gansu Province.The results of the study show that Gansu’s fiscal sustainability is poor,the PPP industry’s unreasonable structure,and its low landing rate and other issues are prominent,which is likely to cause financial risks.Combining the results of the PPP fiscal gap assessment in this paper,we can see that the current PPP development in Gansu Province has financial risks,mainly hidden financial risks,and the magnitude of the risks does not affect the financial sustainability,that is,the risk is controllable,but it still needs attention.The following measures should be taken to prevent and resolve PPP fiscal risks: optimize the fiscal revenue structure and ensure the financial base;strengthen fiscal commitment management and standardize fiscal expenditure boundaries;improve the performance management mechanism and improve risk prevention capabilities.