Study On Fiscal Policy In Promoting Main Function Areas

It is a severe challenge to sustainable development that over-exploitation and disorderly development cause environmental degradation in some areas of china. The concept of the main functional areas is brought forward in the first time by government in the 11th"Five-Year Plan" in 2006. However, the deviation of development concept and lack of appropriate system and policy, become two major obstacles that constraint the construction of the main functional areas. This paper presents the fiscal policy proposals to promote the construction of main functional areas.This paper is consisted by the five chapters, the main content and views are as follows:The first chapter is introduction. The contents include the background, meaning and purpose of the thesis. Review the literature of domestic and international financial policy about the main functional areas. Introduce the paper's methodology, logic, structure, innovation and the deficiencies.The second chapter is about the meaning and substance of the main functional areas. The first section summarizes the main content and features of the main functional areas. The second section summarizes the theoretical basis of the main functional areas planning, including sustainable development theory, regional differentiation theory and the ecological and economic theory. The third section introduces the fundamentals of the four main functional areas planning in china.The third chapter is about the basic theory of the fiscal policies to promote the construction of main function areas. The first section will analyze the general principles between the government and the market in the background of building the main functional areas and further define the relations between the governments of four main functional areas and market. The second section analyzes the financial functions in the background of building the main functional areas and proposes a new concept of financial functions, against the limitation of Musgrave mainstream financial functions. The third section gives the suggestions to resolve the conflict of interests between regions, in the background of building main functional areas.The forth chapter is about current fiscal policy factors which restrict the construction of the main functional areas. This chapter focus on the deviation of development concept and lack of appropriate system and policies which constraint the main functional areas. The first section is about the constraints from deviation of development concept in construction of major functional areas. The second section is about the constraints from lack of effective protection in financial system and policies of major functional areas.The fifth Chapter is about financial policy of promoting the construction of the main functional areas. The first section is about how to change the concept of the development. This section stand for some point of view such as transformation of government functions, reform the system of performance evaluation, financial distribution of local government over-reliance on GDP growth and strengthening the constraints on government action mechanism. The second section is about the fiscal policy in promoting the construction of main function. This section stand for some point of view such as promoting equalization of basic public services in all types of main functional areas, innovating inter-regional ecological compensation mechanism, setting up fiscal policy to guide population movement among the main functional areas, establishing the "green" fiscal policy and differentiate the different fiscal policy to the main functional areas.There are four innovations in this paper:The first innovation is about the relationship between the government and market in the condition of building main functional areas. In this paper, the four main functional areas should be based on different types and combine their main functions of different orientation, direction and market conditions, to determine the relationship between government and the market. It provides a theoretical basis for the implementation of different differentiated fiscal policy that study on relationship between the government and market, in the background of the main functional areas.The second innovation is about financial functions in the background of construction main functional areas. This paper reveals the defects in the financial functions of the Musgrave according to the modern theory of ecological economics and proposes the new financial functions which adapt the human development in the 21st century. (â…°) Resource allocation functions. Highlight the ecological and economic resources between the configuration of the eco-environmental resources into the allocation of resources, from the overall economic development of outstanding scientific and sustainability. (â…±) Income distribution functions. In here the income distribution is based on the multiple values of ecological resources allocation perspective. (â…²) Coordinated development functions. The reason that use coordinated development functions instead of the stabilizing functions of the economy, not only because the government needs to intervene, but also interfere with the production or supply of factors of environmental resources, the formation of economic growth consistent with environmental resource carrying capacity, supply and demand balance, reasonable structure and coordinated development pattern.The third innovation is implementation path of equalization of basic public services. This paper proposes the equalization of basic public services, the specific ideas, research priorities, design of the formula of horizontal transfer payment system from county to county in the context of a province. The counties that finance basic public services per capita are lower than the province counties (cities) the average expenditure level eligible for financial assistance. The counties that finance basic public services per capita are higher than the province counties (cities) the average expenditure level obligate to provide financial assistance.The forth innovation is Interregional ecological compensation system. (1) Innovation of Inter-basin ecological compensation system. This paper proposed inter-basin ecological compensation system that must be guided by the government. (2) Innovation of inter-region atmospheric ecological compensation system. This paper advocates carbon tax as the central revenue, and create the atmospheric ecological compensation fund. The atmospheric ecological compensation fund is mainly used for ecological compensation for limited area and prohibited area. Ecological compensation formula in the atmosphere is designed with considering the area and population of limited area and prohibited area. (3) Innovation of inter-main functional areas ecological compensation system in land development transfer. The income distribution system of land transfer would be reformed as soon as possible, land transfer revenues would be placed under the center government to establish land development rights ecological compensation fund, mainly used for limited area and prohibited ecological compensation. And land development rights ecological compensation formula is designed with considering the area and population of limited area and prohibited area.