Development Priority Zones Under The Perspective Of Public Fiscal Policy Research In Gansu Province

Synergized development of regional economy, as a long-term goal both for regional and national government, is the premise for the national economy’s sustainable development, for the social wellbeing and welfare, and political stability. The concept of major functional areas reflects the people-oriented scientific development idea, and it alters and restrains the focus mainly on short-term objectives and achieve-ments. The far-reaching developing strategies are emphasized instead. Constructions of major functional areas have already been one of innovative practices in China for industry spacious layout and improving synergized regional economy development. Thus, it has also been one of hot research issues. The State Council advocated in2010to deepen reforms of financial systems and to improve public financial systems in terms of requirements of major functional areas’constructions and,? equalization of fundamental public service provision.Gansu Province, although a large province in the western part of China, however, is a province with small population and weak economy. There are many areas under restriction and special protection and it shows an outstanding unbalanced development, which will tend to cause production elements of talents, capital and technologies etc. transfer to more advanced province. Thus, many issues arise in backward areas, such as infrastructure, social problems, increase of urban poor population, lagging behind of social support systems, even worsening of natural environment. Gansu Provincial Planning of Major Functional Areas reflects a spirit of regional harmonizing development, and it is a guideline for Gansu’s development. However, the conventional economic developmental modes have resulted in serious conflicts among resources, environments and population; what’s more, the current financial policy has brought about the inefficient public service and the obvious unbalanced development between regions.As for causes and addressing methods for this unbalanced development between regions, there are many domestic studies. Unfortunately, being based on different theories, statistical methods and sampling, research findings varies substantially. It is undeniable that many factors such as the nature and history have played substantial roles in the regional social and economic development. However, the core factor is the regime’s system. As one of the major tools for macro adjustment, the financial policy plays an all-round and long lasting role for the regional economic harmonious development. As a distribution system, the financial policy functions with its power to control treasures and its administration based on its control of treasures. The major role of the financial policy is to correct market’s errors and ineffectiveness in resources deployment, to restrain the unlimited expansion of regional economic unbalanced development, to bring about a fair development between regions and to optimize the resources deployment. This function has been widely proven both theoretically and practically. Thus, this study of Gansu Province’s financial policy is important and necessary.Taking a perspective of major functional areas as well as its impacts to various stockholders, this study will investigate the roles played by the financial policy to the major functional areas. Based on the variants of public service index of districts and cities under governance of Gansu province, in this study are chronically evaluated the equity public service level in Gansu province and the effects of Gansu’s public financial policies, and what’s more, proposals for improvements are put forward. Apparently, for narrowing the gap between regional unbalanced development and improving government’s administrative efficiency as well as regional harmonious development, it is theoretically and practically worthwhile investigating the dynamic relationships between the financial policies and the development of major functional areas.The study consists of8parts.Part1:Introduction to the research background, contents and methods.Part2:summary of the former studies and explanation of relevant ideas. Regional harmonious development has long been a key research issue both at home and abroad. This research is theoretically based on the research literatures of major functional areas done by domestic and foreign scholars. Taking the perspective of stakeholders in the major functional areas, the study investigates the financial policy’s impacts to the agents as well as its impacts to the construction of the major functional areas.Part3:analysis of current status of Gansu’s development. This is undertaken from Gansu’s construction of major functional areas and regional harmonious development.Part4:evaluation of effectiveness of Gansu’s public financial policy. It is undertaken via the equity level, which is measured with variants of relevant index. In so doing, the deviation is found between the Gansu’s public financial policy and the major functional areas. Part5:analysis of relevant factors of Gansu’s financial policies for its construction of major functional areas. It is undertaken from the following3financial factors:taxation, the central government’s financial policies and transferring payment.Part6:domestic and foreign experience obtained from financial policies for facilitating construction of major functional areas. Shared are experience of some western countries, Japan and Shandong Province.Part7:proposals for Gansu’s construction of major functional areas. Based on taxation, the central government’s financial policies and the transferring payment, the study analyzes the financial policy’s impacts to the construction of major functional areas.Part8:conclusion. This is the study summary and perspectives.