Correlation Research On Fiscal Revenue And Economic Growth

Since the year of1978. china’s economic development has made a tremendous progress. China’s GDP reached47.1564trillion RMB in2011. which is an increase9.2percent compared by the previous year. Economic development provides a sufficient source for the fiscal revenue. China’s fiscal revenue was10.374trillion RMB. which is an increase of24.8percent. With the increase of the fiscal revenue, it guarantees the funding for expanding the government functions. Take advantage of the government functions can provides a good economic environment and promote the economy continues to develop.According to the sources of the government income, the fiscal revenue includes taxation revenue and non-taxation revenue. By analyzing the statistics of china’s fiscal revenue, the size of china’s non-taxation continued to expand and grow faster than taxation revenue. The proportion of non-taxation in fiscal revenue also increased year by year. For a country or the region, the fiscal revenue from the economic development is fixed. The taxation revenue and non-taxation may be influenced in each other. If it will squeeze taxation revenue, the size of non-taxation continues to expand. What will impact when the non-taxation revenue continues to expand? Whether it will have an adverse effect on economic growth and how the non-taxation influenced on the structure of the fiscal revenue. As for now. the management of the non-taxation is not very well. When the scale of non-taxation revenue continued to expand, it is so important to analysis the structure of fiscal revenue, the problem of the correlation between taxation revenue, non-taxation revenue and economic growth, which is increasingly important for maintaining continued growth, health and stable economic development.Based on the above problems, we analyze the correlation from two aspects. Firstly, we analyze the dynamic impact of the taxation, non-taxation and economic growth in the whole china by establishing the VAR model; secondly, we analyze the differences between regions by establishing the panel data model. The results of the VAR model show that the taxation has a positive impact on economic growth; the non-taxation has a negative impact on economic growth at the beginning, with the increasing of the phases the non-taxation will have a positive impact on economic growth; Economic growth have a positive impact on the taxation, non-taxation; There is no obvious substitutes for one to another relationship between the taxation and the non-taxation. The results of the panel data model show that there are obvious differences in regional economic growth; the impact of the taxation revenue to the economic growth is significantly obvious than the non-taxation in the different regions. Finally, we made some recommendations in three aspects:the direction of the fiscal income, the structure of the taxation and the industrial, the specification and management of non-tax revenue.