Fiscal Policy To Promote The Development Of Urbanization In Xinjiang

Problem of urbanization is a major comprehensive subject invoving contemporary Chinese social and economic development and how to coordinated development of national economy, is a new developped fundamental question of modern harmonious society. the rapid expansion of China’s urbanization will greatly promote the urbanization process. Xinjiang’s urbanization rate is far lower than the Middle East, is also much lower than the reality of western provinces. xinjiang urbanization lags, especially the investment and export-led economic growth pattern makes China’s economy maintain the thirty years of high growth,but after the 2008 financial crisis, this model cannot last forever. Adjustment of industrial structure and urbanization development to drive the connotative growth become a new source of power, China’s economic growth in xinjiang is no exception.Therefore, this article instructions the xinjiang industrialization from three dimensions,urbanization and the relationship between the fiscal revenue and expenditure. The first dimension is the foundation of the urbanization. This paper holds that the basis of urbanization is economic development in xinjiang and the development of non-agricultural industries. without the development of economy and industry, urbanization will become "empty" and makes the government a heavy financial burden on his back. To this end, this paper, by using time series dataing from 1978 to 2013, analyzes the economic growth,industrial structure of two variable degree of influence on the level of urbanization in xinjiang.Results shows that the non-agricultural industries has contributed 1% increase of GDP,urbanization level increased by 34.6% on average, per capita GDP logarithm increase 1 unit,the urbanization level increased by 0.0003% on average,It shows that urbanization should be truly achieved on the basis of the industrial development.The second dimension is from xinjiang finance and the relationship with the industrialization and urbanization to understand the role of finance in urbanization. This paper argues that the role of finance in urbanization is embodied in two aspects: First, through fiscal policy, to promote the development of second and third industry, formation of industrial concentration and radiation effects, thereby laying the foundation of urbanization. Second, By expenditure for the provision of public goods and services, urbanization, make the town better play function, and provide better conditions for the development of urbanization in Xinjiang,the formation of towns aggregation effect can make the urbanization of people realize. The empirical analysis shows that fiscal expenditure every 1% increase in the tertiary industry increased by 1%, secundiparity increased by 1.0036%, a 0.7691% increase in production. It shows that fiscal expenditure has a great influence to the non-agricultural industries development. In addition, through the financial revenue and expenditure and urbanization relationship analysis, The conclusion shows that fiscal expenditure and fiscal income have a positive effect on the level of urbanization development, but the promoting function of fiscal expenditure on the urbanization development is greater than the revenue.The third dimension is from urbanization influence on financial revenue and expenditure, by co-integration analysis and granger test conclusion:There is a long-term co-integration relationship between urbanization development and financial revenue and expenditure; Expenditure urbanization effect is greater than revenue, but the urbanization development has a great role on the fiscal revenue growth. This result implies that expenditure contribute to urbanization, but the aggregate effect of urbanization will be formed to promote economic growth and lead to increased revenue, thus it can form a good circulation of industrialization, urbanization, fiscal revenue and expenditure.Through the above analysis, we may safely draw the urbanization of the internal logic:urbanization based on economic development and industrial agglomeration is the real urbanization. And the development of the town brings in revenue growth. Therefore, the realization of urbanization path should be industrialized, urbanization.Therefore, in view of the low xinjiang urbanization level, internal state between differences of urbanization level, jiang town, unreasonable structure of urban space layout of the disequilibrium development present situation, as well as the weight of the real estate industry in the development of urbanization and economic development, light industry and other problems such as environmental protection, Financial terms of the implementation choices of urbanization, the first is to promote industrialization, then the provision of public goods, it is more important for Xinjiang. Because non-agricultural industries development in xinjiang is not enough,urbanization must be linked with the local economic development level,not blindly increase the urbanization rate. Should advance industry development, building city.on the one hand, Fiscal policy promotes industry development.On the other hand, in the provision of public goods,It is an issue, for Xinjiangcharacteristics,further fiscal policy choice should be pointed out in promoting urbanization in xinjiang.It puts forward the optimization of industrial structure adjustment of fiscal policy,which promote the adjustment of industrial structure, highlights the industry support and raising the overall level of service industry, optimize the structure of financial investment,increases the enterprise investment on independent innovation projects; Optimization of revenue and expenditure policies, namely change the fiscal expenditure management principle,strengthen the budget management, so that the city’s public services in rural areas enjoy the same; Transfer payment system of fiscal policy optimization, that is, to improve the vertical transfer payment system, establish a transfer payment special administrative agencies,increase transparency, adjust the structure of capital using, achieve the xinjiang capital targeted. And connecting with the problems appeared in the urbanization process in xinjiang,It puts forward the attach great importance to the protection of ecological environment, to develop small cities and towns infrastructure construction, establishes sustainable funding guarantee mechanism, and combine the urbanization development with building a new socialist countryside, establish suitable characteristics for the xinjiang urban construction and development of urban agglomerations, and strengthen the protection of ethnic culture,improve the level of urban construction and management, contribute to the scientific development of urbanization in the xinjiang and the stability of xinjiang.