The Research Of Land Financial Reform Under The Background Of New-type Urbanization

The rate of urbanization of our country has risen from17.92%in1978to53.73%in2013since the reform and opening-up policy. It only takes35years which developedcountries need decades and hundreds of years. Because of the tax reform in1994and theserious inequality between the governance and finance, the local governments have to searchfor huge extra-budgetary revenue to make up for the lack of fiscal revenue. Land finance thatcan bring huge benefits and abundant financial control space appears at the historic moment.The new-type urbanization need a lot of money and land finance is a great power for the localgovernment to promoting the construction of new-type urbanization. Land finance will bringloss of cultivated land resource, risk of local government finance, too high prices of houses.So the reforming of land financial system and establishing land financial compensationmechanism is the most important problem between central government and localgovernments.This paper applies the method of comparative analysis and inductive analysis toredefine the new type of urbanization and land finance. By classifying land finance contentand analyzing the cause of land finance from the perspective of economic, political, legalpoint of view, this paper induces the hidden troubles that land finance brings. It works out thefunds demand and sources of new-type urbanization by the methods of combination ofqualitative and quantitative analysis. And it analyses the inner link between the new-typeurbanization and land finance by combining18the third plenary session of the decision in2013with national annual government work report in2014. Finally this paper gives thesuggestions of land financial reform under the background of new-type urbanization fromreforming of the existing land finance system and establishing land financial compensationmechanism.This paper work out that land finance has a significant impact on easing the financialdifficulty of local government, enhancing the capacity of local government regulation andpromoting the construction of the new urbanization. So we cannot stop land finance on anational scale. We need to reform it from place to place. We must improve and optimize the land finance at the present stage by promoting the reform of the fiscal and taxation system andland supply system, optimizing the structure of land revenue, doing well in land expropriationcompensation, improving the system of government performance evaluation, perfecting thelegal system. On the other hand, we should establish land financial compensation mechanismby promoting the tax land finance, standardizing the local financing platform, issuingmunicipal bonds and seeking private capital financing.