Papers Category:Fiscal Levy Papers
- China Financial Research
Post Time:2011-12-25 12:35:00
Paper Network: Summary With the establishment of China's market economy system, in particular, the accelerating process of urbanization, urban infrastructure and industrial projects and the demand for capital is also growing, limited only by levels of revenue, has difficult to meet the urban construction and industrial development. How to give full play to the functions of the financial sector and credit advantages, take the initiative to all levels of government commitment to funding pressures, establish and improve the local financial investment and financing system, to avoid financial risk, and promote the rapid development of local economy, has become the local economic development and urban construction in focus study and solve problems.
Keywords: local finance, investment and financing, measures in recent years, with the economy and the rapid development of social undertakings, in particular, the accelerating process of urbanization, urban infrastructure and industrial projects and the demand for capital is also growing, limited financial income levels alone have been difficult to meet the urban construction and industrial development. how to give full play to the functions of the financial sector and credit advantages, take the initiative to all levels of government commitment to funding pressures, establish and improve the local financial investment and financing system, to avoid financial risk, and promote the rapid development of local economy, has become the local economic development and urban construction focused on the problem.
First, the role of local financial investment and financing refers to the financial investment and financing the government as the main means to take paid directly or indirectly by way of raising funds, and in accordance with specific policy objectives the government the money to form fixed assets for the primary purpose a series of fund-raising activities and funds its main role is to: First, without increasing the financial burden on the premise of effective use of market mechanisms to accelerate industrial development.
First, the form of financial investment and financing to credit and operating results raise funds to repay principal and interest, will not increase the financial burden, and secondly, in the realization of the process of industrial development, mainly based on industrial policy adjustments, to provide policy-related industries or low-interest loans equity investment, and market-based allocation of resources to guide social capital in all industries have a reasonable flow and allocation, again, the use of fiscal investment and loan funds for the primary purpose of non-profit, primarily in the investment process-oriented and social capital play concentration, the formation of fiscal investment and loan capital and social capital 'oriented - track' mode, the promotion of social industrial scale.
Second, to effectively address infrastructure and basic industries bottleneck to economic development because of infrastructure and basic industries belong to the quasi-public goods, the construction of high input, low cost, high social benefits, and long payback period, if consider the time value of money, such projects will be very low annual rate of return, if self-regulation by the market supply, will lead directly to infrastructure is seriously lagging behind in economic development needs, become a serious bottleneck constraining economic development, while a significant financial investment and financing advantage, the Government can BOT, loans at preferential rates, equity and other investment and introduce more market mechanisms to operate the project, effectively easing the pressure on fiscal expenditure, fiscal expenditure structure to correct the unreasonable. even if idle funds fully The use and value, but also a good solution due to infrastructure and basic industry lags behind the drag on economic growth issues.
Third, effective investment to fill the budget and general commercial free blank financial investment Financial investment and financing features is that they reflect government policy direction, but also to some extent, in accordance with the principles of organizational management of credit Financial investment of the main areas of quasi-public goods, If these products are totally dependent on financial free investment, due to limited financial resources, there is bound to supply, if totally dependent on corporate financing, bank financing, due to quasi-public goods 'spillover benefits' feature, supply more inadequate, or no investment, so, in private goods and private investment, pure public goods, investment and financial unpaid balance of roughly correspond to the case of financial investment and financing in between, quasi-public goods to fill the investment gap.
Secondly, the financial investment and financing problems in the implementation process as a government financial investment and financing mode of operation of the market in the form of rational use of funds, although alleviate the financial burden, the fiscal expenditure structure more reasonable, and promote industrial development, accelerate infrastructure and basic industries construction, improve the market economic system and other aspects are obvious advantages, but this system is based on the premise of credit, market-based operation, then it will inevitably take the credit risk and market risk. First, the lack of idle funds to finance investment and financing constraints play a role.
Fiscal investment and loan funds mainly from idle funds, when the economy is in rapid development, more investment opportunities in all walks of life, will tend to reduce the idle funds, if crowding out private investment, financial investment and financing part of the funds, although you can play the role of financial investment and financing, but private capital is bound to lead to excess demand for capital, leaving interest rates rise, increasing the financial investment and financing the cost of using capital and inhibit its continued squeeze the trend of private investment funds needed, which would be detrimental to the fiscal investment and loan investment program implementation, reducing its contribution to economic development.
Second, the principle of compensation as the fiscal risk borne by the final due to fiscal investment and loan funds for the purpose of the use of non-profit, as long as the investment income and interest payments to compensate for a slight surplus funds can be, which increases the funds management the risk. Infrastructure and basic industries, once the actual investment rate of return lower than the rate of return on project requirements, the idle capital expense will be enormous, while for high-risk investments in the sectors of industrial policy, if there is no higher profit earnings retained, appear once a project investment risk, not only profit out of the question, and even the cost of investment will also be difficult to recover. Both will reduce the financial risk of the scale of investment and financing, weakening its influence on the national economy and the driving force . Links to free download http://eng.hi138.com
Third, the use of fiscal investment and financing policies and understanding of the existence of errors and some people's understanding of financial investment and financing, limited use of government credit to finance and direct investment in various industries to stimulate economic development, many local governments to borrow money to invest in investment period is short, quick competitive industries, leading to unfair competition at the same time compete with the people out of a lot of private capital, and because the government is prone to such enterprises operate on the internal control risks, eventually leading to loss , will pass on financial risk. This error mode of operation, which reduces the private capital role in boosting the economy, but also reduces the ability of financial macroeconomic regulation and control.
Third, changes in government investment concepts, regulating the financial investment of local financial investment and financing activities for the flaws and problems that arise during the operation, at all levels of government should change as soon as possible investment ideas, investment and innovation to strengthen accountability mechanisms, regulating the financial and investment behavior.
First, abandon the concept of planned economy, to establish a modern market concept a long time, the impact of the planned economic system, the government used to build on the state plan, the project to the target set, command, or interfere with business and community investment activities, resulted in an accurate basis for market need to make the right decisions, and driven by performance and local interests competing for the project, engage in 'achievement projects', 'racking our brains work,' blind investment and repeated investment, leading to identical throughout the industry, low efficiency, waste. Therefore, the level leading cadres should study the market economy, strengthening the financial investment and financing knowledge and investment risks related laws and regulations, effectively changing investment concepts, regulating the financial and investment behavior, efficiency and effectiveness criteria to select and determine the financial investment and financing projects, better promote rapid and healthy development of social economy.
Second, abandon reliance finance and foster the sense of pioneering in the current difficult financial situation around, most local areas in the development and construction is still dependent on the state's financial direct investment in many places that 'the money is public finance money, do not Do not white, 'this' and so on, rely on, to 'thinking, a direct result of financial resources to invest in spread, we struggle to grab the project investment, resulting in poor decisions, poor investment returns, so local governments in improving the process of investment and financing system must be abandoned over-reliance on financial investment and foster innovation consciousness.
Third, the strict definition of financial investment, financial investment returns to play in the market economy, to the operation of market mechanisms to accomplish things by the market, relying solely on market mechanisms do not work or 'market failure' by the government intervention operation of the present, the scope of financial investment in China can be said that throughout all sectors of national economy and society, both by the market mechanism can not operate public utilities investment, infrastructure investment, but also fully capable of operating according to market a large number of competitive industrial investment project, resulting in investment scope and areas too broad, too broad, so the financial investment and financing necessary to strictly define the scope and adjust, such as public goods and basic industries development investment, the Government should be duty-bound to take up, and being able to self-regulation through the market development of the field of industrial development and investment, financial investment and financing should not be involved.
Fourth, innovative financing, broaden the financing channels for the development and construction to raise more funds, financial departments at all levels to present various forms of financing, but due to a lower level of economic development and other reasons, lack of financial resources remains a constraint especially in disadvantaged areas where the financial investment and financing activities, the main obstacle to the smooth implementation, therefore, should be in the original financing, based on the active and innovative financing, broaden the financing channels, to explore investment and financing strategies. Links to free download http:/ / eng.hi138.com