Research on the Evaluation of Henan Province's Construction of National Innovation Highland Level

Abstract

In recent years, China's rapid economic growth has driven investment expansion at various levels of government, resulting in a continuous increase in local government debt. While local governments often rely on substantial borrowing to meet funding needs in economic development and infrastructure improvement, this accumulation of debt also introduces potential fiscal risks. To effectively prevent and manage these risks and ensure national economic security, China launched a comprehensive government accounting reform in 2019, shifting from the traditional cash-based accounting method to the accrual basis, which better reflects the true financial status of the government. This shift represents a significant improvement in government financial management, enabling a more systematic and transparent presentation of assets, liabilities, revenues, and expenses through the consolidated government financial report. This enhanced transparency not only provides essential data to assess the financial health of local governments but also supports in-depth analysis of debt composition and risk points from perspectives like the balance sheet. Such insights offer a scientific basis for identifying, assessing, and mitigating debt risks, aiding governments in developing more effective debt management strategies, and promoting sustainable fiscal development alongside robust risk control.

Received: 24 September 2024 | Revised: 15 November 2024 | Accepted: 23 January 2025

Conflicts of Interest 

The author declares that he has no conflicts of interest to this work.

Data Availability Statement

The data supporting the results of this study can be publicly obtained on the website of the China National Bureau of Statistics at https://www.stats.gov.cn/.

Author Contribution Statement

Kai Zhang: Conceptualization, Methodology, Validation, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Supervision, Project administration, Funding acquisition.