Legal Regulation Of Hidden Debt Of Local Government PPP Projects In China

At present,the battle to prevent and resolve major risks has entered a critical period,and the hidden debt problem has become a key target in the battle.With the revision of China’s "Budget Law",the financing platform of local governments has been centrally cleaned up,which has led local governments in China to choose the government and social capital cooperation(PPP)model to complete the supply of local public goods.However,while the PPP model was widely accepted,some local governments’ improper practice of the PPP model caused them to generate hidden debts.In the current situation,preventing and resolving hidden debts in PPP projects is not only a statutory obligation of local governments,but also an inevitable requirement to reduce debt risks and ensure sustainable local financial development.This article analyzes the problems of incomplete debt laws and regulations in China’s local government PPP projects,incomplete corresponding legal supervision measures,and inadequate assessment of hidden debt.By studying the cases and practices of the hidden debt regulation of PPP projects at home and abroad,the experience of constructing a reasonable legal and regulatory system,regulatory constraints on government investment and financing,and performance management of PPP hidden debts is summarized.Then from these three aspects,a method for legal regulation of hidden debts of PPP projects is proposed.First,in terms of the legal and regulatory system,it is necessary to speed up the legislative progress of PPP laws and administrative regulations,and at the same time to make up for the loopholes and conflicts of existing relevant regulatory documents in a timely manner;second,in terms of the supervision mechanism,it is necessary to specify the supervision targets of hidden debts and improve the pre-warning mechanism for PPP projects.Finally,in terms of the assessment system,it is necessary to set up a more reasonable official assessment system and performance assessment system for the hidden debt in the PPP project.Clarify the indicators of hidden debt,so as to effectively control the hidden debt in PPP projects.