Research On Fiscal Policy For Promoting High-tech Industries In Guangdong Province

Developing high-tech industries is an effective way to transfer the economic growthmode of Guangdong Province. Given the historical and current analysis of itseconomy, the development of high-tech industries in Guangdong province requirespractive governmental input and support. Selecting an appropriate fiscal and taxpolicy is an realistic and effective approach.On the basis a clear definition of high-tech industries, this paper elaborates the generallaw of development of high-tech industries. By analyzing the relationship betweentechnological innovation activities, industrial structure upgrading, long-termeconomic growth and high-tech industries, this paper illustrates the necessity ofgovernment support in the development of high-tech industries. Besides, this paperintroduces and contrasts the function mechanism and policy instruments of fiscalpolicies in promoting the development of high-tech industries. Then starting with theissues in the development of high-tech industries in Guangdong province, we identifythe issues of the fiscal and tax policy: financial investment is insufficient, financialinvestment and financing policy system is not sound, the scale of governmentprocurement is too small, the area the tax policy lays extra emphasis on is notreasonable and unified budget management and supervision mechanism is scarce.Toimprove the existing fiscal policies of high-tech industries in Guangdong Province,we should not only learn and absorb the advanced experience of developed countriesand regions but also consider the actual situation in Guangdong. We are supposed tofollow certain principles: integration of independent innovation and opening to theoutside world, integration of government and market, consideration to both fairnessand efficiency and attention to policy coordination. When making specific policies,the intensity of financial input should be enhanced, the policy-related investment andfinancing system should be perfected, the scale of government procurement should beenlarged, the incentive power that tax policy has on research and development andattraction of talents should be improved, attention should be paid to the use of theincentives of indirect tax, performance rating mechanism of fiscal policies should beestablished, and relevant supporting system should be done well.