378 / 2019-02-25 15:24:12

The Impact Analysis of China's PPP Project Expenditure on Local Financial Affordability

PPP project,Financial Policy,expenditure

全体主题 > Urban Management Systems

As a local public investment tool, PPP may have impacts on local financial sustainability. Based on a city-level PPP project transaction database and local general public budget expenditure forecast, this paper establishes a regional financial affordability prediction model and estimates the annual fiscal liability at the municipal and provincial levels in the next five years. The results show that about one-fifth of the region will have a PPP liability that exceeds 10% of the general public budget expenditure, while infra-structure construction expenditures account for the vast majority. This pa-per suggests that the project's full life cycle supervision and performance evaluation during the operation period is an effective way to improve the efficiency of PPP project operations and reduce the financial burden. An optimization of fiscal liability prediction for different regions is also need-ed.