Abstract: Strengthening the coordination of fiscal resources and budgets is an important part of improving the budget system and also an important strategy for preventing and resolving the debt risks of local governments under the new economic normal. Taking the reform of fiscal funds coordination as the starting point, based on the data at the prefecture-level city level from 2010 to 2023, this paper conducts an empirical analysis of the impact of the reform of fiscal funds coordination on the issuance of debt by financing platforms. The findings show that fiscal funds coordination can effectively reduce the issuance scale of urban investment bonds and play a role in preventing and resolving the debt risks of financing platforms. The mechanism analysis reveals that fiscal funds coordination can effectively revitalize the existing funds and optimize the allocation of funds, which not only ensures the intensity of fiscal expenditure but also improves the efficiency of fiscal expenditure. These measures provide the government with more available funds, reduce its reliance on external borrowing, and thereby play a role in preventing and resolving debt risks. The heterogeneity analysis reveals that the policy effect of fiscal funds coordination is more significant in regions with low economic growth pressure and high auditing intensity. Therefore, it is necessary to continuously optimize the fiscal funds coordination policy, improve the efficiency of fund use, accelerate the resolution of the debt risks of financing platforms, promote the transformation of financing platforms in a forceful, orderly and effective manner, strengthen the synergy and coordination between fiscal funds coordination and debt management, and accelerate the establishment of a long-term mechanism for preventing and resolving debt risks of local governments.

Key words: debt of local government, coordinated allocation of fiscal funds, debt risk of financing platforms, issuance scale of urban investment bonds