Major Function Areas Of Construction And Fiscal Equalization

The discussion about national "Eleventh Five-Year" Plan on promoting theformation of the main functional areas is a major innovation for regional developmenttheory. In the discussion paper of the12th Five-Year Plan envisages, which giving anoverall plan that to promote the construction of the main functional areas ofGuangdong Province: Strengthening the leading role of the center of the city,promoting the economic integration of the Pearl River Delta region, promoting theYue dong northwest region， and implementating of the overall layout of thecomprehensive marine development strategy. However, regional financial inequalityconstrains the major innovation of theory into implementation. So this paper providesa basic framework for the main functional areas of Guangdong Province of fiscalequalization which is based on the general principles of fiscal equalization in the mainfunctional areas, and from the perspective of the mechanism of fiscal policy. And thispaper outlines a summary of the implementation of the map from the perspective ofvarious regions of the recommendations of the fiscal policy.The positive impact of fiscal equalization construction of the main functionalareas of Guangdong Province is to improve the regional level of public servicesparticularly in rural areas, and it also promotes regional select the appropriate mode ofdevelopment. The negative impact including the implementation of leapfrogdevelopment in Guangdong, and the financial gap will increase further. The mainproblems of the current fiscal policy in Guangdong Province is how to push forwardthe construction of the main functional areas which including: firstly, there is a biggap in public service; secondly, the current fiscal policy is not conducive to resourceconservation and environmental factors and the transfer system is not perfect; thirdly,the current fiscal policy can not reflect the differentiated regional development. In thispaper, in order to improve the regional non-equal, this paper is based on the initialconcept of fiscal equalization of the main functional areas of Guangdong Province,which contains four parts: the optimal development zones, key development,restricted development zones, prohibited development zone for the corresponding fiscal policy recommendations.