Evaluation Of Transformation Path And Effect Of Local Government Financing Platform

In the late 1980 s,with the publicity of China’s urbanization construction wave,the demand for construction funds expanded rapidly.In the 1990 s,the central finance was relatively tight,accounting for less than 1 / 4 of the national budget revenue.In 1994,China carried out the reform of tax sharing system,the "transfer of financial power and unchanged administrative power" has led to a serious mismatch between the financial power and administrative power of local governments.At the same time,the state has successively promulgated the budget law and the guarantee law.The financing channels of local governments have been seriously blocked.Local governments can not issue bonds,loans or guarantee financing.Local government financing platforms have emerged under this background,and local governments have set up financing platforms one after another,The financing platform began to use government credit to help local governments finance,solved the shortage of local infrastructure construction funds,promoted China’s urbanization process,and made great contributions to driving China’s economic development.When the financial crisis broke out in 2008,the central government issued a "4trillion yuan investment stimulus plan" to maintain economic growth,and local government financing platforms expanded rapidly.Document No.19 of 2010 opened the prelude to the supervision of local financing platforms.Subsequently,the state issued many documents to regulate the development of local government financing platforms,among which,GF No.43 of 2014 requires "stripping the government financing function of the government financing platform,and the government financing platform company shall not add government debt".Since then,local government financing platforms have begun to be standardized and cleaned up.Local government financing platforms in provinces and cities have begun to gradually peel off their government financing functions,and the external regulatory environment has become increasingly strict.Local government financing platforms are required to no longer add government implicit debt and no longer rely on Government credit endorsement financing,but gradually transform to market-oriented.Therefore,how to resolve government implicit debt and how to make local government financing platform companies transform smoothly,It is an urgent problem for local government departments to solve.This paper takes local government financing platform as the research object.First of all,on the basis of consulting a large number of literature,literature research method is used to summarize and analyze the definition,causes,development process and significance of local government financing platform.Secondly,by the method of field investigation and case analysis,to local government financing platform company C as an example,through to the transformation of his environment and his motives were analyzed,and find out the cause of the platform of C company transformation,the feasibility of its transformation,and through the analysis of the transition path of C platform company,from different angles to assess the effect of C platform company transformation,The entropy method is used to comprehensively analyze the transformation effect of C Platform company again,and finally it is evaluated that THE transformation of C platform company has achieved phased results.Finally,the advanced experience of its transformation path is analyzed,and the transformation path of platform companies is also proposed.This paper to evaluate effect of transformation of local government financing platform,content innovation,the local government financing platform to actively explore more suitable for the smooth transition of their path to offer help,for after the successful transformation can better meet the needs of the local government,boosting the local economy better,faster and more healthy sustainable development.