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Research on China’s PPP Financial Affordability Evaluation

Received: 7 May 2018     Accepted: 4 June 2018     Published: 15 June 2018
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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.

Published in Journal of World Economic Research (Volume 7, Issue 2)
DOI 10.11648/j.jwer.20180702.13
Page(s) 64-72
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

PPP, Financial Affordability Evaluation, Risk Management

References
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[4] BernardinAkitoby, Richard Hemming, Gerd Schwartz. Public Investment and Public-Private Partnerships. IMF Economic Issues, 2007.
[5] Y Jiang. Selection of PPP Projects in China Based on Government Guarantees and Fiscal Risk Control. International Journal of Financial Research, 2016, 8 (1): 99.
[6] R Shendy, H Martin, P Mousley. An Operational Framework for Managing Fiscal Commitmentss from Public-Private Partnerships. World Bank Publications, 2013.
[7] K Funke, T Irwin, I Rial. Budgeting and Reporting for Public-Private Partnerships. International Transport Forum Discussion Papers, 2013.
[8] Timothy Irwin. Controlling Spending Commitments in PPPs. Palgrave Macmillan UK, 2008.
[9] Rui S. Monteiro. PPPs and Fiscal Risk: Experience of Portugal. Palgrave Macmillan UK, 2008.
[10] Jia Knag. PPP Institutional Supply Innovation and Its Positive Effect. Economic Research Information, 2015 (5): 16-19.
[11] Wen Laicheng. Effective Control of the Financial Risk of PPP Mode. Accounting Research, 2014 (3): 1-1.
[12] Ji Fuxin. Research on Government Debt and Budget Mechanism of China’s PPP Mode, Tax and Economics, 2015 (4): 6-11.
[13] Dong Zaiping. Analysis of Types and Characteristics of China’s PPP Government Debt. Local Financial Research, 2016 (9).
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[15] Xie Lichao. Construction of Standardized PPP Management Mode to Boost Financial Reform. Financial Research 2015 (1).
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Cite This Article
  • APA Style

    Zhao Yu, Cao Fuguo. (2018). Research on China’s PPP Financial Affordability Evaluation. Journal of World Economic Research, 7(2), 64-72. https://doi.org/10.11648/j.jwer.20180702.13

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    ACS Style

    Zhao Yu; Cao Fuguo. Research on China’s PPP Financial Affordability Evaluation. J. World Econ. Res. 2018, 7(2), 64-72. doi: 10.11648/j.jwer.20180702.13

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    AMA Style

    Zhao Yu, Cao Fuguo. Research on China’s PPP Financial Affordability Evaluation. J World Econ Res. 2018;7(2):64-72. doi: 10.11648/j.jwer.20180702.13

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  • @article{10.11648/j.jwer.20180702.13,
      author = {Zhao Yu and Cao Fuguo},
      title = {Research on China’s PPP Financial Affordability Evaluation},
      journal = {Journal of World Economic Research},
      volume = {7},
      number = {2},
      pages = {64-72},
      doi = {10.11648/j.jwer.20180702.13},
      url = {https://doi.org/10.11648/j.jwer.20180702.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20180702.13},
      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.},
     year = {2018}
    }
    

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    AU  - Cao Fuguo
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    AB  - 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.
    VL  - 7
    IS  - 2
    ER  - 

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Author Information
  • School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China

  • School of Law, Central University of Finance and Economics, Beijing, China

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