Land Finance And Local Government Financial Ability

Land finance was born in the 1990s under the background of a series of system, such as land use system reform in 1988, tax sharing reform in 1994, charge system reform in 1998 and land transfer system in 2003.Undeniably, land finance gave a great contribution to infrastructure construction, economic development and urbanization in china, it also brought a series of problems, such as dependent on land transfer fee, right seeking, increasing illegal land cases and land resource waste. Superadd finite land and the fluctuation of real estate, the unsustainable of land finance reveals gradually. Land finance is closely related to the lack of local government financial ability. Under the background of unsustainable land finance, it is important to rebuild the local government financial ability. Firstly, this paper analyzes the causes of land finance. Secondly, this paper analyzes the current situation of land finance in Anhui Province and restimate local government financial ability. Finally, some policy suggestions are put forward for the rebuilt of local government financial ability.The full text is divided into six chapters.The first chapter is the introduction. It is mainly introduce the background, significance, shortage and innovation of this paper.The second chapter is the literature review at home and abroad. The contents of this section are mainly to sum up domestic and foreign academic circles in order to have ideas for further research.The third chapter is the analysis of the logic between land finance and local government financial ability. First of all, the paper gives a brief introduction to theoretical basis and related concepts. Secondly, the paper finds out that the production of land financeis closely related to the lack of local government financial ability. Finally, the paper uses panel VAR model to do empirical test in order to cnfirm the relationship.The fourth chapter is the analysis of the present situation of land finance based on the data of Anhui province.The paper analyses depthly in order to find out the problems currently. Taking into account the land finance unsustainable, this chapter based on the data of Anhui Province to restimate the financial scale.The fifth chapter puts forward suggestions based on the previous research. In this paper, we propose that the reconstruction of local government financial ability is the fundamental solution to the problem of Land Finance. Local government financial ability includes tax revenue, debt income, the state-owned capital operating income and social security fund income. Tax revenue is the main and stable form of local government. Therefore, this paper will focus on the local government financial reconstruction of the local tax system, and put forward a concrete system design.