In view of the collective financial distress in China's universities,the soft budget constraint is the root cause of the formation,and the lack of investment is only superficial incentives.Soft budget constraints on the importance of solving the financial problems based on the author analyzes the causes of China's system of soft budget constraints: the monopoly nature of quasi public goods and service functions of universities;the essence of subordination of ownership system and the political system caused by the formation of the role of government and the association of universities;university leaders of the three target incentive system dislocation at present our country together constitute the soft budget constraints of internal and external causes of the system (non behavior system), organizational system origin (behavior system).In view of these three points, this paper provides some countermeasures for the soft budget constraint of the university budget from the aspects of the combination of universities, the autonomy of the loan,the leader's office and so on.

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