Research on China’s PPP Financial Affordability Evaluation
Journal of World Economic Research
Volume 7, Issue 2, June 2018, Pages: 64-72
Received: May 7, 2018; Accepted: Jun. 4, 2018; Published: Jun. 15, 2018
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Authors
Zhao Yu, School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China
Cao Fuguo, School of Law, Central University of Finance and Economics, Beijing, China
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Abstract
This paper studies the reasons that PPP may cause fiscal risk in provision of public services, and points out the necessity of expenditure-scale control in the application of PPP and the essence of financial affordability evaluation. Through analysis on the shortcomings in the current PPP financial affordability evaluation, it puts forward some issues such as the low reliability of China's financial affordability evaluation, lack of supervision on non-general public budgets and backward government accounting system. In addition, this paper proposals policy suggestions of enhancing the provincial-level financial department in the function at management and supervision in accordance with specific issues; of standardizing the government expenditure management; of fully establishing a comprehensive financial reporting system of accrual accounting system by government; and of advancing the legislative process, with a view to provision of reference for China’s PPP fiscal risk management.
Keywords
PPP, Financial Affordability Evaluation, Risk Management
To cite this article
Zhao Yu, Cao Fuguo, Research on China’s PPP Financial Affordability Evaluation, Journal of World Economic Research. Vol. 7, No. 2, 2018, pp. 64-72. doi: 10.11648/j.jwer.20180702.13
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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