1. The positioning of public investment is not clear. Under the condition of market economy, the main purpose of public investment is to correct market failure and optimize resource allocation by providing public products to the society. Its main field is the non-profit public field, not the competitive and profitable field, focusing on the improvement of social welfare level, not the economic growth rate. There are some deviations in the positioning of public investment in China, especially since the implementation of the proactive fiscal policy, public investment has become the main factor to maintain economic growth, deviating from the basic function of public investment. In addition, the scope of public investment in China is too large and the structure is not very reasonable. According to statistics, about 40% of China's public investment is distributed in competitive and profitable fields, even involving industries with fierce competition such as catering and entertainment services. In addition, most of China's transformation investment is concentrated in profitable state-owned enterprises, while relatively little is provided for non-profit public enterprises, and the investment of public institutions such as agricultural infrastructure, education and environmental protection industries is seriously insufficient.
2. The use efficiency is low. At present, the input-output effect of public investment in China is still poor. Low economies of scale. Repeated construction of some infrastructure projects (such as the airport and expressway) has brought worrying economic benefits, while poor engineering quality and engineering corruption are also common, such as Chongqing Rainbow Bridge and Jiujiang flood dike, which have caused great waste of social resources. The main reason is that the budget constraints of public investors are soft and their responsibilities are unclear. In addition, some localities and departments excessively pursue "political achievements" and have serious short-term behavior, which leads to the abuse of public capital and low efficiency.
3. The government is overburdened. 200 1 In the first half of the year, China's fixed assets investment increased 15. 1% year-on-year. In 2000, the contribution rate of investment growth to GDP growth was less than 50%, while in the first half of 2006, it was 5438+0, and the contribution rate of investment had risen to 77%. This means that the rapid growth of fixed assets investment has become the main factor to expand domestic demand. However, the growth rate of non-state-owned economic investment, which is mainly invested in other aspects, still lags behind. In the first half of 200 1, state-owned and other types of economic investment increased by 17.9%, while collective and individual economic investment only increased by 7.5%, with a difference of 10 by more than 0 percentage points (less than 5 percentage points in the same period of 2000). Although the relatively slow growth of investment in non-state-owned economy has its own reasons, such as the non-state-owned economy is mainly distributed in labor-intensive sectors with low organic capital composition, and the technological innovation ability of enterprises is low, more importantly, there are some institutional obstacles in China, such as the high entry threshold in some fields and the lack of effective financing channels for non-state-owned economy. All these have limited the further growth of non-state-owned investment. According to this trend, if private investment cannot shoulder the heavy responsibility of stimulating economic growth, the state will not have enough financial resources to undertake all the investment, and the heavy burden will lead to the severe situation that the government is overburdened and the economic development is insufficient.
4. The whole country lacks unified leadership, planning and management. At present, China's government investment and financing are managed by the Planning Commission, the Ministry of Finance, various competent departments, policy banks and other relevant departments, lacking unified planning, and it is difficult to form a joint force. With the complexity and diversification of public investors, the investment behavior of all levels, departments and governments needs to be standardized urgently. The gradual tendency of public investment has also strengthened the government's control over enterprises to a certain extent, intensified local protectionism, and caused the delay of marketization process and missed opportunities.
5. The BOT model of government guiding foreign investment faces difficulties. First of all, the sponsor of BOT project must pay a huge sum of money in advance for feasibility study and even preliminary design. The decision-making power of the project is in the hands of the government, which may not accept it or be taken away by other contractors, which is not conducive to attracting consortia with average strength who are interested in investing; Secondly, foreign businessmen put forward plans with big profits and small risks from their own interests, which caused an unfavorable situation; Finally, foreign investment is in foreign currency and income is in local currency, so its projects are facing the problem of foreign exchange balance.
6. Public investment needs to attract domestic private capital to invest in basic industries. With the establishment of the socialist market economic system, the national income pattern is inclined to enterprises and individuals, and the investment capacity of social private capital is expanding. Governments in some cities have begun to introduce private capital to invest in infrastructure construction. For example, China Puppet Art Troupe absorbed social funds and established China Puppet Art Theatre Co., Ltd., which is controlled by private capital. However, at present, the proportion of private capital investment in basic investment is still very small, and its potential for investment in infrastructure construction is still great.
7. Policy banks are in a difficult situation. First, the capital cost is high. At present, the main sources of funds for China's policy banks are capital and key construction funds allocated by the government, issuance of financial bonds, refinancing by the central bank and interbank lending funds; Second, the structure of funding sources is extremely unbalanced. At present, the term structure of financial bonds issued by China Development Bank is very asymmetric with the loans it undertakes for long-term construction projects. The contradiction of "short loan and long loan" in China Development Bank is quite prominent; Third, the task of using funds is arduous. At present, there are two main contradictions in policy banks: on the one hand, policy loan projects are often industries with poor economic benefits and good social benefits, and it is difficult to recover loan principal and interest; On the other hand, the corresponding liabilities, namely financial bonds, are hard constraints, which makes it difficult for banks to meet the needs of their business development.