Regulating Local Government Financing Vehicles and Public-Private Partnerships in China

2016 ◽  
Author(s):  
Hui Jin ◽  
Isabel Rial
Keyword(s):  
Local Government ◽  
Public Private Partnerships ◽  
Government Financing

scholarly journals Regulating local government financing vehicles and public-private partnerships in China

2017 ◽  
Vol 1 (2) ◽  
pp. 190 ◽  
Author(s):  
Jin Hui ◽  
Isabel Rial
Keyword(s):  
Local Government ◽  
Best Practice ◽  
Borrowing Constraints ◽  
Regulatory Framework ◽  
Public Private Partnerships ◽  
Efficiency Gains ◽  
Government Financing ◽  
Three Stages ◽  
New Generation ◽  
Fiscal Risks

In this paper, we argue that there is much room for China to strengthen its regulatory framework for public-private partnerships (PPPs). We show that infrastructure projects carried out through local government financing vehicles (LGFVs) are largely unregulated PPPs, and significant fiscal risks have already manifested themselves. While PPPs can potentially provide efficiency gains, they can also be used by governments to circumvent budgetary borrowing constraints. Therefore, effective PPP regulation is key to delivering PPPs’ benefits while containing their potential fiscal risks. The authorities have taken concrete steps in order to establish a sound regulatory framework and foster a new generation of PPPs. However, to make the framework effective, we highlight a few issues to be resolved. Based on international best practice, we propose a four-pillar regulatory framework for China, which could be implemented gradually in three stages.

scholarly journals EKSISTENSI PAJAK DAERAH SEBAGAI WUJUD PELAKSANAAN OTONOMI DAERAH DALAM KERANGKA GOOD FINANCIAL GOVERNANCE

Media Iuris ◽  
2018 ◽  
Vol 1 (2) ◽  
pp. 251 ◽  
Author(s):  
Galih Arya Prathama
Keyword(s):  
Local Government ◽  
Financial Management ◽  
Central Government ◽  
Financial Resources ◽  
Regional Government ◽  
Delegation Of Authority ◽  
Government Financing ◽  
Financial Governance ◽  
The Government ◽  
Positive Support

The increase of regional capacity in managing the needs of Regional Development accompanied by the Delegation of Authority from Central Government to Regional Government, has implications in increasing the need for Development Funds, while the Regions can’t continue to rely on the fulfillment of these needs to the Central Government. In response to this, in implementing Autonomy, the Regions are given additional Authority of Financial Management. Such authority, creates demands for the Regions to be creative and focused in achieving the Government Goals that have been established.,As an effort to execute duties and functions of Regional Government in the form of Regional Financial Management, then a region must be able to recognize the potential and explore all the resources it has. Local Government is expected to dig deeper related to the potential derived from its own financial resources, especially in order to meet the needs of government financing and development in the region, one of them through Local Own Revenue as one of the main sources of Regional Financial Reception. Independence of Local Own Revenue for a Regional Government, giving positive support to the ability of the region in meeting the needs to build the region. Thus, the greater source of income derived from the potential owned by a region, the more freely the area can accommodate the needs of community without the interest of Central Government which is not in accordance with the needs of people in the region.

Eurozonization of the Chinese Economy: How Do Intergovernmental Transfers Affect Local Government Debt in China?

2018 ◽  
Vol 17 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Ming Lu ◽  
Huiyong Zhong
Keyword(s):  
Local Government ◽  
Government Debt ◽  
Chinese Economy ◽  
Fiscal Sustainability ◽  
Intergovernmental Transfers ◽  
Fiscal Transfers ◽  
Coastal Cities ◽  
Government Financing ◽  
Per Capita

China's local government debt has risen dramatically bringing risks to China's fiscal sustainability and long term economic growth. Using urban construction investment bonds (UCIBs) issued by local government financing vehicles (LGFVs), we study how intergovernmental fiscal transfers impact the issuance of UCIBs under China's unitary currency system. Applying instrumental variable estimation, we find that special-purpose fiscal transfers per capita are positively associated with the issuance of UCIBs. A one-RMB increase in special-purpose fiscal transfers per capita is associated with an increase in the issuance of UCIBs per capita of 0.282 RMB, whereas regular fiscal transfers (including tax rebates and general fiscal transfers) do not affect the issuance of UCIBs. Furthermore, the effect of special-purpose fiscal transfers on the issuance of UCIBs mainly exists in inland cities rather than coastal cities. This imposes risks of “eurozonization” for the Chinese economy. We also find a deterioration of refinancing in terms of issuing more UCIBs.

Blue, White, and Red Heat

Boom Cities ◽  
2019 ◽  
pp. 35-63
Author(s):  
Otto Saumarez Smith
Keyword(s):  
Local Government ◽  
Central Government ◽  
Central Area ◽  
Public Private Partnerships ◽  
Initial Reaction ◽  
Local Authorities ◽  
Set Up ◽  
Area Redevelopment ◽  
Planning Group ◽  
City Centres

This chapter looks at central government’s role in directing the way in which local authorities enacted central-area redevelopment schemes. It shows how modernist ideas were sustained by a broadly consensual cross-party political culture in central government. It shows how the Joint Urban Planning Group, set up within the Ministry of Housing and Local Government, provided guidance to local authorities in how to form public–private partnerships to redevelop their city centres. The last section discusses the fate of these ideas during Labour’s first term after the 1964 election, and argues for an economic explanation of the initial reaction against modernist approaches to the built environment.

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