Study On The Establishment Of Fiscal Stabilization And Development Fund Of Resourced-based Cities

Resource-based city refers to the one which non-renewable natural resource extraction and processing industry as the leading industry of the city. The formation and development of resource-based cities has its own unique characteristics, mainly reflected in a single economic structure and strong dependence on natural resources. This makes resource products pricing and production volume have a great influence on fiscal revenue and expenditure of resource-based cities. Meanwhile, resource-based cities face severe challenges in environmental protection, people’s livelihood and other issues related to sustainable development. Thus, fiscal policy should give full play to the "counter-cyclical" and "reservoir" function to ease fiscal contradictions of resource-based cities and promote the sustainable development of resource-based cities.Although the corresponding research and study is limited, this paper puts forward a proposal to establish "Fiscal Stabilization and Development Fund of Resource-based Cities", so as to solve fiscal contradictions and fix problems of sustainable development of resource-based city and make a preliminary study on the Fund. This paper first defines the resource-based cities, emphasizing the importance of natural resources and resource industries on resources-based cities and analyzed the serious challenges in sustainable development of resource-based city. Subsequently, based on the theory of industry life cycle, this paper analyses the characteristics of government revenues and expenditure of resourced-based cities, and concludes that the resource-based cities have great fiscal contradiction and volatility. On this basis, this paper proposed to establish "Fiscal Stabilization and Development Fund of Resource-based Cities" in resource-based cities in order to maintain fiscal balance and accumulate funds for the sustainable development of resource-based cities. Also, analysis on the necessity and feasibility of the Fund is made. Then the paper made a research on related funds to provide a reference for the "Fiscal Stabilization and Development Fund of Resource-based Cities". Also, this paper made a case study on Hegang City. Finally, this paper carried out preliminary exploration on the Fund and constructively proposed the principles and policy recommendations for the Fund.