The 21st century, land finance of local government increasingly concerned by the societyand and has been widely reported in the media. As the scale of land revenue continues to expand, land finance of local government triggered many shortcomings. With the accelerated process of urbanization in China,some cities will be greater demand for construction funds, if we can not change the current over-reliance on local government fiscal situation of land, it is bound to cause a new round of "enclosure hot", increase the city sprawl, and seriously hamper the sustainable development of China's urban economy.Therefore, how to reduce local government fiscal dependence on land and guatantee the local government having sufficient funds for urban construction is a major problem that local governments in China are now facing.After reform tax system in 1994 the local government faced the problem of asymmetric powers.The local government forced the financial pressure, the area between the pressure of competition and performance shows, the pursuit of GDP growth to meet increasing revenue to complete the final say. The current series of laws and regulations on land and make money for local governments to open the door to form a so-called "land finance." This study are as follows:First of all, the financial status of the land are described. Some of the indicators of land the size of the financial were estimated and land market in 2009, the lates described, based on these data and obtained the land of local government finance in the proportions of total fiscal revenue is too large, the local government finance certain financial risks.Secondly, "land finance" model of the hazard are analysised. First describes the financial might of China's land unsustainable financial risk. Then, the land described extensive use of fiscal contribute the land, resulting in a large number of arable land is occupied, the process of alienation of the city. Finally, described the many injustices of land caused by financial issues, including land finance contributed to the purchase of high prices to increase pressure on the national, the unfair distribution of land revenue harm the interests of farmers and land resource use intergenerational unfairness problem.Then, the causes of this phenomenon is analyzed. After the local government tax distribution asymmetry of financial authority and powers, "bad money" in local government through the real estate and land transfer tax to raise the local budgets, respectively, both inside and outside income, land reform the tax system after the finance is the rational behavior of local governments. And then we analyzed the resulting land finance other reasons, including defects in the land management system, a sound system of laws and regulations, lack of incentive and restraint mechanisms are not perfect.Finally, the paper proposes some opinions changing the "land finance" the current situation. Including the performance evaluation system reform of local government officials and reasonable division of property rights and powers, land transfer will be charged to the collection of property tax. |