The Public Cost Estimates, Share And Financing Research Of Urbanization

Since the 1980s, China’s economic developed rapidly, and the level of industrialization improved constantly. It was the agricultural surplus labor that forced the transfer of agricultural labor in the expanding scale. In 2013, our country resident population achieved 731.11 million and the rural resident population achieved 629.61 million. The urbanization rate achieved 53.7% in traditionally sense. In 2013, Shandong province’s urbanization rate also reached 53.6%, but according to statistics, only 100000 people get the city registered permanent residence. That is to say, the household registration Urbanization rate is far lower than the traditional urbanization rate. The third plenary session of the 16th Congress put forward to balance urban and rural development, play the function of city to the rural and the drive of rural to city, so as to fundamentally eliminate the urban-rural dual structure and form the overall development pattern. The 18th Congress puts forward to promote our country’s new urbanization. The third plenary session of the 16th Congress points out to form the healthy development of urbanization mechanism and a new relationship between urban and rural. In 2014 the government work report points out that the new urbanization is the key to balance the development of urban and rural. The Urbanization rate includes the traditional rate that name the proportion of urban resident population, also includes the household rate, namely the proportion of the household registration population in permanent residents. Due to the limitation of the household registration system in our country, migrants work in the city but it is hard to get the household registration, also can’t enjoy all kinds of public services. The household registration failed to keep up with the pace of the industrialization. In order to eliminate the urban-rural dual structure, it is need to reform the household registration, also need government to undertake the cost of the transfer of surplus agricultural labor actively. It is need to accelerate the reform of the fiscal and taxation system, and to increase the local financial resources, so that to provide a solid financial foundation for urbanization.Migrant labors are marginal products and catalyst of the economic and social development. China’s current household registration system makes the migrants difficult to get urban household. Since the tax-distribution reform, financial power concentrated in the hands of the central government. Lack of financial resources, it is difficult to support the huge cost of migrant workers. As a large number of migrant workers coming into the city, they can’t enjoy the public services equal to urban residents and mostly live in low level.Their children education problem is also difficult to solve. They are far lower behind the city residents in income level, consumption level, employment and welfare status and so on. Migrant workers are in the embarrassment of strip. For a long time, the large cost is the key to hinder the urbanization process. To improve the urbanization in ShanDong province, the government must know the public cost, the cost allocation, and how to raise the cost. This article is divided into six parts, the first is the introduction and the theory and literature review, secondly, this paper introduces the present situation of urbanization, the key part estimates the public cost and the cost sharing, finally puts forward policy Suggestions on urbanization of local governments to raise funds.This paper estimates the public cost of urbanization, include the housing cost, the public facilities, education, social insurance, medical and health services and social assistance. Housing cost refers to the per capita government spending on housing. Public facilities, education, social insurance, medical and health services costs respectively using urban per capita investment in fixed assets, per capita education and cultural entertainment spending, per capita government spending on social insurance, per capita medical and health service coverage of health care spending. Social assistance use the per capita spending on social assistance. By comparing measure, JiNan’s urbanization public cost is 93457Yuan, Qingdao’s public cost is 111986Yuan, and the urbanization public cost of Linyi is 77188Yuan. Then the article analyses how to share it between central government, provincial and municipal government and the following respectively from two angles of theoretical analysis and practical investigation. According to the classic theory, the central government, provincial and municipal government and the following undertake the cost equal, accounting for a third of it; Reality investigation concluded that the transformation cost mostly fall on the municipal government, closely to 80%.The central government just undertake a small proportion of the cost. It can be seen from the analysis that the local governments need sufficient financial resources to provide a wide range of public services. The reform of the fiscal and taxation systems makes the body tax of the local government loss and put forward a great challenge for local government. To enrich the local resources, local government must overall various revenue, construct local duty system, optimize the structure of fiscal expenditure, give full role to the market and varieties of government financing platform, so that to provide a solid financial foundation for citizenship.Due to the number of rural migrant workers and the level of economic development are different in Shandong province, this paper calculates the public cost of urbanization in Jinan, Qingdao and linyi. Then it clear the undertaking public cost for all levels of government in theory and reality to enrich the theory of public finance; For lack of local financial resources, the article proposed some methods to increase local government’s revenue. It has important practical significance for Shandong province to speed up the new urbanization process.