Guanzhong - Tianshui Economic Zone "in The Context Of The The Weinan City Fiscal Policy Research

In 2009, National Development and Reform Committee (NDRC) issued the Development Plan for Guanzhong-Tianshui Economic Zone, which involved 7 cities:Xi'an, Tongchuan, Baoji, Xianyang, Weinan, Yangling, and parts of Shangluo. According to the plan, Weinan city is located in "A nucleus, an axis, three radiation" of the zone, and it was the second center of the space strategy. Jia Kang, an expert of Finance Research Center in the Finance Ministry, indicated that it was vital to apply the supportive means of finance policy to ensure that the proposed strategy goals and the various tasks in the planning could be carried out successfully. The Implementation Program of Weinan City also pointed out that:"we should utilize the finance policy issued by the centre government, try to get more support from provincial transfer payment from the exchequer, and invest more fund to infrastructure, key projects, competitive industries and public service." The Weinan government should also try its best to formulate and implement the reasonable tax policy to encourage the eastern industry to invest in Weinan, and deliver some positive tax policy to facilitate the circular economy industry development. If the subordinate governments need to carry out the policy and mission given by higher governments and tend to improve their performance, the premise would be that they must understand the context they were in, especially the finance system and the accountability system (or management by objective system). The former system reformed dramatically since 1994 system reform of tax distribution, the later one have been carried out over the country from 1980s. From then on, the low level governments have to face the situation that they must take charge more responsibility but with less finance ability due to "the right of finance move up, but the obligation of policy implementation move down to local government" policy.By investigating the factors like resources, economic, political and others, this study showed the opportunities and challenges faced by Weinan City under the background of the development of Guanzhong-Tianshui Economic Zone; Based on the related laws and regulations documents and related statistical data of the city, this paper demonstrated the internal advantages and disadvantages of current financial policy; Through text analysis of the government's documents of management by objective system besides rules and regulations issued by both superior and itself, combined with qualitative interview of the particular subjects, it analyzed the obligations confronted by Weinan City.Based on our former studies on current situation about finance rights and the obligations and their relationship to finance performance, utilizing the Surplus Value Theory and the financial policy theory and the transfer payment theory, and taking the financial management experience about supporting the backward areas of foreign counties, this study raised the policy proposal that the government should optimize the power structure, and relocate finance resources.This study found that reasonable financial expenditure is the basis of regional economic development, however, under the current background of rapid economic development, the gap between financial revenue and expenditure is not optimistic. The government should make extreme effort to develop the economy, which needs a lot of capital investment; whereas giving priority to those dominant industries to enjoy the preferential tax policy have reduced the tax sources. Then the local government encountered the big challenge of the paradox that "the right of finance moved up, but the obligation moved down". In view of the above questions and the reasons, this research proposed the following countermeasures. First of all, Weinan City need to expand the financial channel to relieve pressure, optimize the local expenditure structure and reallocate financial resources more reasonably, and ask the central government help to waive all or parts of the debts of the local government to ease debt pressure. In addition, in terms of financial expenditure, Weinan policy-makers should integrate the financial resources more efficiently and effectively based on the guiding ideology:"vast area, enormous industry, great group".