The role of government investment

Government investment is a necessary means of national macro-control and plays an important macro-guiding role in social investment and resource allocation. Government investment can make up for market failure, coordinate the proportion of major investment in the whole society, and then promote economic development and structural optimization. Government investment functions are generally manifested in the following aspects:

(1) Balanced social investment The government plays a macro-control role. Under the condition of market economy, although the government investment does not occupy the main position, it can adjust the balance of total social investment. When the amount of social investment is constantly expanding and the inflation trend is serious, government investors can reduce the amount of investment to alleviate investment inflation. When the economy is depressed and social investment is low, government investors increase investment to expand social demand and promote economic development.

(2) Government investment plays an important role in adjusting investment structure and guiding social investment direction. In different periods of economic development, the state needs to formulate different industrial policies and determine the order of industrial development. The basic direction of investment is the industries that are given priority by the national industrial policy, especially the weak links of the national economy. Giving key support to industries with great social benefits but insignificant economic benefits is conducive to optimizing the investment structure and coordinating the investment ratio. Under the condition of market economy, the government is no longer the only investor. Even important industries such as infrastructure that the country needs to support need to encourage social investment. However, government investment has played a leading and exemplary role. Through the use of direct investment and indirect investment means (such as investment subsidies, investment credit, investment loan interest subsidies, etc. ), guide the whole society to invest more in industries and fields encouraged by the state.

(three) to create a good investment environment for social private investment. A very important aspect of the investment environment is the improvement of public facilities and social infrastructure. A considerable number of public facilities, social infrastructure and soft environment construction can not be commercialized or the degree of commercialization is very low, that is, a virtuous cycle of input and output of investment economic activities can not be realized. Therefore, this investment is the obligation and responsibility of government investors, and it is also a key point of government investment.

(four) to support the construction of national key projects in the region. Government investment guarantees the construction of key projects in terms of capital, immigration and labor supply, undertakes investment in local public welfare projects, and concentrates on investment in basic projects and pillar industries. At the same time, through various policies and economic means, promote asset restructuring and stock adjustment. Promote the construction of modern enterprise system and make enterprises the basic subject of investment. 1. government investment should be strictly limited to the public domain, including public welfare projects and infrastructure projects, allowing enterprise groups and powerful private enterprises to invest in profitable public welfare and basic projects. Government investment should be further divided into public investment and industrial investment, and different investment management modes should be implemented. Government investment projects should implement the project legal person responsibility system, operate and manage in strict accordance with the requirements of modern enterprise system, and ensure that the interests of investors and the risk restraint mechanism are implemented. At the same time, reform the management system of extra-budgetary funds, change decentralized management into necessary centralized management, weaken departmental interests, plug management loopholes, and strengthen government investment. Establish a review system for government investment projects and a system for investigating misjudged cases, and promote democratic and scientific investment decisions. Widely introduce competition mechanism and vigorously promote standardized bidding and contracting system.

2. Create a public expenditure framework, adjust the expenditure structure and determine the expenditure scope. Ensure the normal operation of state machinery, increase support for social welfare undertakings, support agricultural and animal husbandry production and poverty alleviation, and do a good job in non-operating infrastructure construction. Realize the return of functions, reduce investment in productive capital construction and tap potential funds of enterprises, and resolutely withdraw financial funds from productive and competitive fields. Straighten out the relationship between financial function and enterprise development. Financial support for enterprises is limited to arranging basic living security and reemployment subsidies for laid-off workers, and stripping social institutions within enterprises. On the basis of completing the institutional reform of public institutions, the categories of public institutions are determined according to the "public welfare" standard, and funds are arranged according to different situations.

3. When the government invests in infrastructure projects, it should actively promote industrialized operation, change the current situation that infrastructure projects are mainly undertaken by the government, and reduce the financial burden. For profitable infrastructure projects, such as rail transit, toll roads, waterworks, gas, heat, sewage and garbage treatment facilities, the government should choose investment enterprises by bidding, and the government will grant franchise rights to investment enterprises. Successful investors adopt BOT (Build-Operate-Transfer), BOOT (Build-Own-Operate-Transfer), BOO (Build-Own-Operate) and BTO (build-transfer-operate).

4. Reasonably arrange the investment layout and adjust the regional industrial structure. Investment layout, that is, the distribution ratio of government investment in various regions, is an important part of government investment policy. China has a vast territory, and the regional economy is extremely unbalanced. Reasonable layout is of great significance, which is not only conducive to adjusting the layout of productive forces and regional industrial structure, but also a necessary means to adjust regional disparities and promote regional coordinated development.