Reckon the Public Debts' Sustainability of Financing Scale: Based on the Consideration of Railway's New Development in China

The Chinese government is now considering building more than 20000 kilometers new railway lines over the country, which has raised wide concern and hot discussions, especially about the resources of the construction fund. According to the public property of railway installations and the experience of constructing investment in the past, the financing method regarding public debt issuance as main will be one of the principal channels. Facing with a reduction in the fiscal income and a massively increasing demand of all kinds of infrastructure construction funds, how much capital the railway construction can raise through the issuance of public debt and how big debt scale public finance can bear are information that decision-making sector urgently wants to find out. This research adopts the reckoning approach for the sustainability of public debts' scale, comparing with the support of public debt investment to the railway construction in the past. It suggests that related parties think about the strength of financing support, get the financing work of social capital done in advance, and enlarge the investing effect of public debt in multiple channels.